Question

[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): Work in Process—Mixing Department June 1 balance 35,000 Completed and transferred to Finished Goods ? Materials 120,205 Direct labor 80,500 Overhead 98,000 June 30 balance ? The June 1 work in process inventory consisted of 5,100 units with $18,570 in materials cost and $16,430 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, 37,600 units were started into production. The June 30 work in process inventory consisted of 8,200 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.

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. For materials, what is the sum of the cost of beginning work in process inventory plus the cost added during the period?

7. For conversion, what is the sum of the cost of beginning work in process inventory plus the cost added during the period?

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-b. What is the total cost accounted for?

Answer 1

Items	Account Title and Explanation	Debit	Credit
1	Work-in process - Mixing department	$120,205
	Raw material inventory		$120,205
	To record raw material inventory used
	Work-in process - Mixing department	$80,500
	Wages payable		$80,500
	To record direct labor used
2	Work-in process - Mixing department	$98,000
	Manufacturing overhead allocated		$98,000
	To record manufacturing overhead allocated
3	Compute units completed and transferred as follows:
	Beginning work in process	5,100
	Add; Units started during the month	37,600
	Total units to account for	42,700
	Less: Ending work in process	8,200
	Units completed and transferred	34,500
4	Compute equivalent units of production for material
		Material
	Units transferred outs	34,500
	×    Percentage of completion	100%
	Equivalent finished units (a)	34,500
	Ending work in process	8,200
	×    Percentage of completion	100%
	Equivalent units (b)	8,200
	Total equivalent units of production for material (a) + (b)	42,700
5	Compute equivalent units of production for material
		Conversion
	Units transferred outs	34,500
	×    Percentage of completion	100%
	Equivalent finished units (c)	34,500
	Ending work in process	8,200
	×    Percentage of completion	50%
	Equivalent units (d)	4,100
	Total equivalent units of production for conversion (c) + (d)	38,600
6	Compute total cost as follows
		Material
	Cost of material in beginning work in process	$18,570
	Raw material added during the month	$120,205
	Total material costs	$138,775
7	Compute total cost as follows
		Conversion
	Cost of conversion in beginning work in process	$16,430
	Conversion costs incurred 80,500 + 98,000	$178,500
	Total conversion costs	$194,930
8	Cost per equivalent unit for material
	Total material costs	$138,775
	÷   Total equivalent units of production for material	42,700
	Cost per equivalent unit	$3.25
9	Cost per equivalent unit for conversion
	Total conversion costs	$194,930
	÷   Total equivalent units of production for conversion	38,600
	Cost per equivalent unit	$5.05
10	Cost of ending working process for material (8,200 × 3.25)	$26,650
11	Cost of ending working process for conversion (4,100 × 5.05)	$20,705
12	Cost of material transferred to finished goods (34,500 × 3.25)	$112,125
13	Cost of conversion transferred to finished goods (34,500 × 5.05)	$174,225
14	Finished goods inventory	$286,350
	Work in process - Missing department		$286,350
	To record completed units transfer to finished inventory
15a.	Beginning cost of work in process	$35,000
	Add: Cost of material and conversion during the period	$298,705
	Total cost to account for	$333,705
15b.	Cost of completed inventory	$286,350
	Cost of ending work in process	$47,355
	Total cost accounted for	$333,705