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 to account for units and costs. 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	43,000		Completed and transferred to Finished Goods	?
Materials	138,925
Direct labor	88,500
Overhead	106,000
June 30 balance	?

The June 1 work in process inventory consisted of 5,900 pounds with $22,770 in materials cost and $20,230 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, 38,400 pounds were started into production. The June 30 work in process inventory consisted of 9,800 pounds that were 100% complete with respect to materials and 50% complete with respect to conversion. 1. Compute the equivalent units of production for conversion.

2.

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

3. What is the cost per equivalent unit for materials?

4. What is the cost of ending work in process inventory for materials?

5.

What is the cost of materials transferred to finished goods?

Answer 1

	Beginning work in process inventory				5,900	Completed & transferred			34,500
	started during the year				38,400	Ending work in process			9,800
	units to be accounted				44,300	units accounted for			44,300
	Equivalent units
					% mat	Materials	% CC	Conversion
	Completed & transferred			34,500	100%	34,500	100%	34,500
	ending work in process			9,800	100%	9,800	50%	4900
				44,300		44,300		39,400
	cost per unit
					Materials	CC	Total
	Beginning work in process				22,770	20,230	43,000
	cost added during the year				138,925	194500	333,425
	total cost				161,695	214,730	376,425
	equivalent units				44,300	39,400
	cost per unti				3.65	5.45
	cost of ending work in process inventory.
	materials		9,800	*	3.65	=	35770
	conversion		4,900	*	5.45	=	26705
	cost of ending work in process inventory.							62475
	cost of goods transferred to finished goods
	materials		34,500	*	3.65	=	125925
	conversion		34,500	*	5.45	=	188025
	cost of ending work in process inventory.							313950
								376425
1)	Equivalent units of production for conversion					39,400
2)	beginning + cost added for materials					161,695
3)	cost per equivalent units for materials					3.65
4)	cost of ending work in process for materials					35770
5)	cost of materials transferred to finihsed goods					125925