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 30,000, Completed and transferred to Finished Goods ?, Materials 142,840 Direct labor 91,500 Overhead 109,000 ,June 30 balance ? ,The June 1 work in process inventory consisted of 4,800 units with $17,140 in materials cost and $12,860 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, 37,300 units were started into production. The June 30 work in process inventory consisted of 8,000 units that were 100% complete with respect to materials and 50% complete with respect to conversion. 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. (Journal Entry) 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
Quantities	Physical Units	Materials	Conversion Costs
Units to be accounted for
Work in process, June 1	4800
Started into production	37300
Total units	42100
Units accounted for
Transferred out	34100	34100	34100
Work in process, June 30	8000	8000	4000
Total units	42100	42100	38100
Costs	Materials	Conversion Costs	Total
Work in process, June 1	17140	12860	30000
Costs incurred during June	142840	200500	343340
Total Costs $	159980	213360	373340
Equivalent units	42100	38100
Unit costs $	3.80	5.60	9.40

10. Cost of ending work in process inventory for materials = 8000 x $3.80 = $30400

11. Cost of ending work in process inventory for conversion = 4000 x $5.60 = $22400

12. Cost of materials transferred to finished goods = 34100 x $3.80 = $129580

13. Amount of conversion cost transferred to finished goods = 34100 x $5.60 = $190960

14.

General Journal	Debit	Credit
Finished goods inventory (34100 x $9.40)	320540
Work in process-Mixing department		320540
(To record transfer to finished goods)

15-a. Total cost to be accounted for = Beginning work in process $30000 + Materials $142840 + Direct labor $91500 + Overhead $109000 = $373340

15-b. Total cost accounted for = Cost of ending work in process $52800 ($30400 + $22400) + Costs transferred to finished goods $320540 ($129580 + $190960) = $373340