Question

11 Verizon 2:51 AM 10 61% Slopack Company manufactures one product that goes through one processing department called Mixing. Al raw materials are introduced at the start of work in the Moving Department. The company uses the weighted average method of process costing. Its Work in Process T-account for the Moring Department for June follows (all forthcoming questions pertain to June): Work in Process—Mixing Department June 1 balance 28,00 Completed and transferred to Finished Goods ? 0 Materials 120,0 00 Direct labor 79,50 0 Overhead 97.00 0 June 30 balance The June 1 work in process inventory consisted of 5,000 units with $16,000 in materials cost and $12,000 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 50% complete with respect to conversion. During June, 37.500 units were started into production. The June 30 work in process inventory consisted of 8,000 units that were 100% complete with respect to materials and 40% complete with respect to conversion Required: 1. Prepare the journal entries to record the raw materials used in production and the direct labor cost incurred 2. Prepare the journal entry to record the overhead cost applied to production 3. How many units were completed and transferred to finished goods during the period? 4. Compute the equivalent units of production for materials. 5. Compute the equivalent units of production for conversion, 6. What is the cost of beginning work in process inventory plus the cost added during the period for materials? 7. What is the cost of beginning work in process inventory plus the cost added during the period for conversion? 8. What is the cost per equivalent unit for materials ? 9. What is the cost per equivalent unit for conversion? 10. What is the cost of ending work in process inventory for materials? 11. What is the cost of ending work in process inventory for conversion? 12. What is the cost of materials transferred to finished goods? 13. What is the amount of conversion cost transferred to finished goods? 14. Prepare the journal entry to record the transfer of costs from Work in Process to Finished Goods 15-a. What is the total cost to be accounted for? 15-6. What is the total cost accounted for? 428 words

Answer 1

Statement of equivalent production
Particulars	Input	Particulars		Equivalent unit
Material	Conversion
%	Units	%	Units
Opening WIP	5000	Completed and transfer to finshed goods	34500	100	34500	100	34500
Unit introduced	37500
		Closing WIP	8000	100	8000	40	3200
Total	42500		42500		42500		37700

Note:Assume normal loss is zero

Statement of cost for each elements
Particulars	Materials	Labor	Overhead	Total
Cost of opening WIP	16000	6000	6000	28000
Cost incurred during the month	120000	79500	97000	296500
Total cost	136000	85500	103000	324500
Equivalent units	42500	37700	37700
Cost per unit	3.2	2.267904509	2.732095	8.2

Distribution of cost
	Amount	Amount
Value of unit comleted(34500*8.2)		282900
Value of closing stock
Material(8000*3.2)	25600	41600
Labor(3200*2.2679)	7257.294
Overhead(3200*2.732)	8742.706

Process1 account

Dr

Particulars	Units	Amount	Particulars	Units	Amount
Opening working process	5000	28000	Finished goods	34500	282900
Material	37500	120000
Labor		79500
Overhead		97000	Closing WIP	8000	41600
		3245000
	324500				324500

Requirements

1) Process 1 ac Dr 199500

Material 120000

Labor 79500