Question

Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses the weighted average method of process costing. Its Work in Process T-account for the Mixing Department for June follows (all forthcoming questions pertain to June): ? June 1 balance Materials Direct labor Overhead June 30 balance Work in Process-Mixing Department 42,000 Completed and transferred to Finished Goods 136,480 87,500 105,000 ? The June 1 work in process inventory consisted of 5,800 units with $22,280 in materials cost and $19,720 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 60% complete with respect to conversion. During June, 38,300 units were started into production. The June 30 work in process inventory consisted of 9,600 units that were 100% complete with respect to materials and 50% complete with respect to conversion. 15-a. What is the total cost to be accounted for? 15-b. What is the total cost accounted for? a. Total cost to be accounted for $ 370,980 b. Total cost accounted for

Answer 1

Answer 15-a

Total cost to be accounted for

Particulars	Amount ($)
Cost of beginning work in progress inventory	$42,000
Cost added to production during the period	$328,980
Total cost to be accounted for	$370,980

Total cost accounted for

Particulars	Amount ($)
Cost of ending work in progress inventory (Note)	$60,480
Cost of units transferred out (Note)	$310,500
Total cost accounted for	$370,980

Note

Given,

Beginning Work in Process Inventory	5,800 units
Materials: 100% complete	$22,280
Conversion: 60% complete	$19,720
Production started during June	38,300 units
Production completed during June (38,300 + 5,800 – 9,600)	34,500 units
Costs added to production in June
Materials cost	$136,480
Conversion cost ($87,500 + $105,000)	$192,500
Ending Work in Process Inventory: 9,600 units
Materials: 100% complete
Conversion: 50% complete

Equivalent units of production

Particulars	Materials	Conversion
Units completed and transferred out in June	34,500	34,500
Work in process, June 30:
Materials (9,600 * 100%)	9,600
Conversion (9,600 * 50%)		4,800
Equivalent units of production in June	44,100	39,300

Cost per equivalent unit

Particulars	Total cost	Materials	Conversion
Cost to be accounted for:
Work in process, June 1	$42,000	$22,280	$19,720
Total production cost	$328,980	$136,480	$192,500
Total cost	$370,980	$158,760	$212,220
Equivalent units		44,100	39,300
Cost per equivalent unit		($158,760 / 44,100) $3.6	($221,200 / 39,300) $5.4

Cost of ending WIP and units transferred out

Particulars	Materials	Conversion	Total
Ending WIP inventory:
Equivalent units	9,600	4,800
Cost per equivalent unit	$3.6	$5.4
Cost of Ending WIP inventory	(9,600 * $3.6) $34,560	(4,800 * $5.4) $25,920	$60,480
Units completed and transferred out:
Units transferred	34,500	34,500
Cost per equivalent unit	$3.6	$5.4
Cost of units transferred out	(34,500 * $3.6) $124,200	(34,500 * $5.4) $186,300	$310,500