In: Accounting
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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 |
27,000 |
Completed and
transferred to Finished Goods |
? |
Materials | 151,100 | ||
Direct labor | 95,500 | ||
Overhead | 113,000 | ||
June 30 balance | ? |
The June 1 work in process inventory consisted of 4,400 units with $14,100 in materials cost and $12,900 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, 36,900 units were started into production. The June 30 work in process inventory consisted of 8,800 units that were 100% complete with respect to materials and 50% complete with respect to conversion.
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?
please answer all questions!
Units to account for: | |
Beginning work in process | 4400 |
Units started this period | 36900 |
Total units to account for | 41300 |
Total units accounted for: | |
Completed and transferred out | 32500 |
Ending work in process | 8800 |
Total units accounted for | 41300 |
5 | Units | % Materials | EUP-Materials | % Conversion | EUP-Conversion | |
Units completed and transferred out | 32500 | 100% | 32500 | 100% | 32500 | |
Units of ending work in process | 8800 | 100% | 8800 | 50% | 4400 | |
Equivalent units of production | 41300 | 36900 |
6&7 | Cost per EUP | Materials | Conversion |
Cost of beginning work in process | 14100 | 12900 | |
Costs added during this period | 151100 | 208500 | |
Total costs | 165200 | 221400 | |
8&9 | Cost per EUP | Materials | Conversion |
Total costs | 165200 | 221400 | |
÷ Equivalent units of production | 41300 | 36900 | |
Cost per equivalent unit of production | 4.00 | 6.00 | |
10&11 | Costs of ending work in process | Materials | Conversion |
Equivalent units of production | 8800 | 4400 | |
Cost per equivalent unit of production | 4.00 | 6.00 | |
Total ending work in process | 35200 | 26400 | |
12&13 | Costs transferred to finished goods | Materials | Conversion |
Equivalent units of production | 32500 | 32500 | |
Cost per equivalent unit of production | 4.00 | 6.00 | |
Total cost transferred to finished goods | 130000 | 195000 |
14 | Date | Account Titles and Explanation | Debit | Credit |
Jun. 30 | Finished goods inventory | 325000 | ||
Work in process inventory | 325000 | |||
(To record costs transferred to finished goods) |
15-a. | Total cost to be accounted for: | |
Cost of beginning work in process | 27000 | |
Costs added during this period | 359600 | |
Total cost to be accounted for | 386600 | |
15-b. | Total cost accounted for: | |
Costs of ending work in process | 61600 | |
Costs transferred to finished goods | 325000 | |
Total cost accounted for | 386600 |
Work in Process-Mixing Department | |||
June 1 balance | 27000 | Completed and transferred to Finished Goods | 325000 |
Materials | 151100 | ||
Direct labor | 95500 | ||
Overhead | 113000 | ||
June 30 balance | 61600 |