Question

Required information The Foundational 15 (LO4-1, L04-2, L04-3, LO4-4, LO4-5) (The following information applies to the questions displayed below.] 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 Work in Process-Mixing Department 27,000 Completed and transferred to Finished Goods 153, 250 97,500 115,000 Materials Direct labor Overhead June 30 balance The June 1 work in process inventory consisted of 4,200 units with $14,440 in materials cost and $12,560 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, 36,700 units were started into production. The June 30 work in process inventory consisted of 9,200 units that were 100% complete with respect to materials and 50% complete with respect to conversion. Foundational 4-1 Required: 1. Prepare the journal entries to record the raw materials used in production and the direct labor cost incurred. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Clopack Company Requirement 1 Journal Enteries Trans. Particulars Work in Process-Mixing a/c To Raw Materials Inventory Dr. Debit in $ Credit in $ 153250 153250 Dr. 97500 Work in Process-Mixing a/c To Wages Payable 97500 Requirement 2 Journal Enteries Trans. Particulars Work in Process-Mixing a/c Dr. To Manufacturing Overhead Debit in $ Credit in $ 115000 115000 Requirement 3 The "units completed and transferred to finished goods" is computed as follows: Pounds Work in process, June 1 4200 Started into production during the month 36700 Total pounds in process 40900 Deduct work in process, June 30 -9200 Completed and transferred out during the month 31700

Requirement 4&5 Equivalent Units Materials Conversion 31700 31700 Units transferred out Work in process, ending: 9,200 units x 100% 9,200 units x 50% Equivalent units of production 9200 4600 36300 40900 Requirement 6 & 7 Cost of beginning work in process Cost added during the period Total cost $97,500 + $115,000 = $212,500 Materials Conversion 1444012560 153250 212500 167690 225060 Requirement 8 & 9 The cost per equivalent unit for materials and conversion is computed as follows: Total cost (a) 167690 225060 Equivalent units of production (b) 40900 36300 Cost per equivalent unit (a) = (b) 4.1 6.20 Requirement 10 & 11 Total The cost of ending work in process inventory for materials and conversion is computed as follows: Materials Conversion Equivalent units of production (a) 9200 4600 Cost per equivalent unit (b) 4.1 6.20 Cost of ending work in process 37720 28520 inventory (a) (b) 66240 $64,500 is the June 30 balance in the Work in Process-Mixing Department T-account

Requirement 12 & 13 The cost of materials and conversion transferred to finished goods is computed as follows: Materials Conversion Total Units transferred out 3170031700 Cost per equivalent unit (b) 4.1 6.20 Cost of units transferred to finished 129970 196540 3 26510 goods (a) (b) Requirement 14 The journal entry to record the transfer of costs from Work in Process to Finished Goods would be recorded as follows: Dr. 326510 Finished Goods a/c To Work in Process-Mixing 326510 Requirement 15 The total cost to be accounted for and the total cost accounted for is: Costs to be accounted for: Cost of beginning work in process inventory Costs added to production during the period Total cost to be accounted for 27000 365750 392750 Costs accounted for: Cost of ending work in process inventory Cost of units completed and transferred out Total cost accounted for 66240 326510 392750