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 25,000 Completed and transferred to Finished Goods 157,080 99,500 117,000 The June 1 work in process inventory consisted of 4,000 units with $13,020 in materials cost and $11,980 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, 36,500 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.

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.)

2. Prepare the journal entry to record the overhead cost applied to production. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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? (Round your answer to 2 decimal places.)

9. What is the cost per equivalent unit for conversion? (Round your answer to 2 decimal places.)

10. What is the cost of ending work in process inventory for materials? (Round your intermediate calculations to 2 places.)

11. What is the cost of ending work in process inventory for conversion? (Round your intermediate calculations to 2 places.)

12. What is the cost of materials transferred to finished goods? (Round your intermediate calculations to 2 places.)

13. What is the amount of conversion cost transferred to finished goods? (Round your intermediate calculations to 2 places.)

14. Prepare the journal entry to record the transfer of costs from Work in Process to Finished Goods. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

15-a. What is the total cost to be accounted for?

15-b. What is the total cost accounted for?

Answer 1

Answer with working notes is given below

Credit Debit $256,580 1 General Journal Work in process - Mixing Department To Raw Material inventory To Wages payable (To record issue of material to work in process) $157,080 $99,500 Credit Debit $117,000 General Journal Work in process - Mixing Department To Manufacturing overhead (To record overhead applied to production) $117,000 3 Units completed and transferred to finished goods 30,900 Unit Reconciliation: Units to account for: Beginning WIP Inventory Units Started During Period Total Units To Account for 4,000 36,500 40,500 Total Units accounted for From Beginning WIP in Inventory Units started and completed during Period Units completed and transferred out Units in Ending WIP Inventory Total Units Accounted for 4,000 26,900 30,900 9,600 40,500 4 & 5 Equivalent Units of Production - Weighted average method % Materials Equivalent units | EUP % | EUP Materials Conversion Conversion Units Units Completed during Period: Units completed and transferred out Units in Ending WIP Inventory Total 30,900 9,600 40,500 100% 100% 30,900 9,600 40,500 100% 50% 30,900 4,800 35,700 6 cost of beginning WIP inventory plus the cost added during the period for materials $170,100 1 cost of beginning WIP inventory plus the cost added during the period for Labor $228,480 Cost per equivalent unit of production Cost from Beginning WIP Inventory Current Period Costs Total cost Costs Equivalent units of production 8 & 9 Cost per equivalent unit of production (rounded to 2 decimal places) Materials $13,020 $157,080 $170,100 Costs 40,500 EUP $4.20 Conversion $11,980 $216,500 $228,480 A 35,700 B $6.40 A/B EUP 10 cost of ending work in process inventory for materials $40,320 11 cost of ending work in process inventory for Conversio $30,720 12 cost of materials transferred to finished goods $129,780 13 cost of conversion transferred to finished goods $197,760 EUP Cost per EUP Total Cost 30,900 30,900 $4.20 $6.40 $129,780 $197,760 $327,540 Total Cost accounted for : Cost of units transferred out Direct Material Conversion Total cost transferred out Costs of ending work in process Direct Material Conversion Total cost of ending Work in process Total costs accounted for EUP 9,600 4,800 Cost per EUP Total Cost $4.20 $40,320 $6.40 $30,720 $71,040 $398,580 14 Credit Debit $327,540 General Journal Finished Goods To Work in process - Mixing Department (To record transfer of finished goods from WIP) $327,540 15-a total cost to be accounted for $398,580 Total Costs to be Accounted for : Opening WIP Direct Material Conversion Cost Total Cost to Account for $25,000 $157,080 $216,500 $398,580 15 -b Total cost accounted for $398,580 As per working above