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	28,000	Completed and transferred to Finished Goods	?
Materials	151,215
Direct labor	96,500
Overhead	114,000
June 30 balance	?

The June 1 work in process inventory consisted of 4,300 units with $15,240 in materials cost and $12,760 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, 36,800 units were started into production. The June 30 work in process inventory consisted of 9,000 units that were 100% complete with respect to materials and 50% complete with respect to conversion.

Questions :

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?

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. (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

Solution :

Computation of Equivalent unit of Production - Weighted Average - Mixing Department
Particulars	Physical Units	Equivalent units
		Material	Conversion
Work in Process, beginning	4300
Started during the current period	36800
Total units to account for	41100
Units accounted for:
Unit completed & Transferred out	32100	32100	32100
Closing WIP:	9000
Material (100%)		9000
Conversion (50%)			4500
Equivalent units of production	41100	41100	36600

Computation of Cost per equivalent unit of Production - Weighted Average - Mixing Department
Particulars	Material	Conversion
Opening WIP	$15,240.00	$12,760.00
Cost Added during Period	$151,215.00	$210,500.00
Total cost to be accounted for	$166,455.00	$223,260.00
Equivalent units of production	41100	36600
Cost per Equivalent unit	$4.05	$6.10

Computation of Cost of ending WIP and units completed & transferred out - Weighted Average - Mixing Department
Particulars	Material	Conversion	Total
Equivalent unit of Ending WIP	9000	4500
Cost per equivalent unit	$4.0500	$6.1000
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$36,450	$27,450	$63,900
Units completed and transferred	32100	32100
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$130,005	$195,810	$325,815

Cost reconcilaition - Weighted Average - Mixing department
Particulars	Amount
Costs to be accounted for:
Cost of beginning WIP inventory	$28,000.00
Cost added to production	$361,715.00
Total Cost to be accounted for	$389,715.00
Costs accounted for as follows:
Cost of unit transferred out	$325,815
Ending WIP	$63,900
Total cost accounted for	$389,715.00

Refer above production cost report:

9. Cost per equivalent unit for conversion = $6.10 per unit

10.  cost of ending work in process inventory for materials = $36,450

11. cost of ending work in process inventory for conversion = $27,450

12. cost of materials transferred to finished goods = $130,005

13. amount of conversion cost transferred to finished goods = $195,810

14.

Journal Entries
Event	Particulars	Debit	Credit
1	Finished goods inventory Dr	$325,815.00
	To Work In Process Inventory		$325,815.00
	(To record purchase of merchandise on account)

15.a  total cost to be accounted for = $389,715

15b. total cost accounted for = $389,715