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	35,000		Completed and transferred to Finished Goods	?
Materials	120,205
Direct labor	80,500
Overhead	98,000
June 30 balance	?

The June 1 work in process inventory consisted of 5,100 pounds with $18,570 in materials cost and $16,430 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, 37,600 pounds were started into production. The June 30 work in process inventory consisted of 8,200 pounds that were 100% complete with respect to materials and 50% complete with respect to conversion. What is the cost of ending work in process inventory for conversion? What is the cost of materials transferred to finished goods? What is the amount of conversion cost transferred to finished goods? What is the total cost to be accounted for?       15-b. What is the total cost accounted for?

Answer 1

Beginning work in process inventory				5,100	Completed & transferred			34,500
started during the year				37,600	Ending work in process			8,200
units to be accounted				42,700	units accounted for			42,700
Equivalent units
				% mat	Materials	% CC	Conversion
Completed & transferred			34,500	100%	34,500	100%	34,500
ending work in process			8,200	100%	8,200	50%	4100
			42,700		42,700		38,600
cost per unit
				Materials	CC	Total
Beginning work in process				18,570	16,430	35,000
cost added during the year				120,205	178500	298,705
total cost				138,775	194,930	333,705
equivalent units				42,700	38,600
cost per unti				3.25	5.05
cost of ending work in process inventory.
materials		8200	*	3.25	=	26650
conversion		4,100	*	5.05	=	20705
cost of ending work in process inventory.							47355
cost of goods transferred to finished goods
materials		34,500	*	3.25	=	112125
conversion		34,500	*	5.05	=	174225
cost of ending work in process inventory.							286350
cost of ending WIP inventory for conversion						20,705
cost of materials transferred to finished goods						112,125
amount of conversion cost transferred to finished goods						174,225
total cost to be accounted for						333,705
total cost accounted for						333,705