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.

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 = Units transferred + Ending WIP x Completion

		Material	Conversion
Units to account for
Beginning Work in process	4800
Units started	37300
Total Units to account for	42100
Units accounted for
Units transferred	34100	34100	34100
Equivalent units in ending WIP	8000	8000	4000
Total units accounted for	42100
Equivalent units of production		42100	38100
	Material	Conversion	Total
Cost of beginning work in process	$         17,140	$        12,860	$          30,000
Cost added during the production	$       142,840	$      200,500	$       343,340
Total Cost	$       159,980	$      213,360	$       373,340
Equivalent units of production	42100	38100
Cost per Equivalent unit	$              3.80	$             5.60
	Material	Conversion	Total
Ending Work in process inventory
Equivalent units	8000	4000
Cost per Equivalent unit	$              3.80	$             5.60
Cost of Ending Work in process inventory	$         30,400	$        22,400	$          52,800
Units completed and transferred out
Units transferred	34100	34100
Cost per Equivalent unit	$              3.80	$             5.60
Cost of Units transferred	$       129,580	$      190,960	$       320,540
Costs to be accounted for
Cost of beginning work in process	$         30,000
Cost added during production	$       343,340
Total Costs to be accounted for	$       373,340
Costs accounted for as follows
Cost of Ending work in process	$         52,800
Cost of Units transferred	$       320,540
Total Costs accounted for	$       373,340

11. What is the cost of ending work in process inventory for conversion?
$52800

12. What is the cost of materials transferred to finished goods?
$129580

13. What is the amount of conversion cost transferred to finished goods?
$190960

14.

Account Titles	Debit	Credit
Finished Goods inventory	$       320,540
Work in Process Inventory		$      320,540
(Goods completed)

15a.

Costs to be accounted for
Cost of beginning work in process	$         30,000
Cost added during production	$       343,340
Total Costs to be accounted for	$       373,340

15b.

Costs accounted for as follows
Cost of Ending work in process	$         52,800
Cost of Units transferred	$       320,540
Total Costs accounted for	$       373,340