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):

Work in Process—Mixing Department
June 1 balance	29,000	Completed and transferred to Finished Goods	?
Materials	145,275
Direct labor	92,500
Overhead	110,000
June 30 balance	?

The June 1 work in process inventory consisted of 4,700 units with $16,040 in materials cost and $12,960 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, 37,200 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.

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

		Equivalent units
	Whole units	Materials	Conversion
Completed and transferred (4,700+37,200-8,200)	33,700	33,700	33,700
Ending work in process	8,200	8,200	4,100 (8,200*50%)
Total	41,900	41,900	37,800

	Materials	Conversion
Cost in beginning work in process	$16,040	$12,960
Cost added during June	145,275	202,500
Total costs	161,315	215,460
Equivalent units	41,900	37,800
Cost per equivalent unit	$3.85	$5.7

9. Cost per equivalent unit for conversion = $5.7

10. Cost of ending work in process inventory for materials = 8,200*$3.85 = $31,570

11. Cost of ending work in process inventory for conversion = 4,100*$5.7 = $23,370

12. Cost of material transferred to finished goods = 33,700*$3.85 = $129,745

13. Amount of conversion cost transferred to finished goods = 33,700*$5.7 = $192,090

14. Journal Entry:

General Journal	Debit	Credit
Finished goods ($129,745+192,090)	$321,835
Work in process		$321,835

15a. Total cost to be accounted = Cost in beginning work in process + Cost added during June

15a. Total cost to be accounted = $29,000 + 347,775 = $376,775

15b. Total cost accounted for = Costs of units completed and transferred + Cost in ending work in process

15b. Total cost accounted for = $321,835 + 54,940 = $376,775