Clopack Company manufactures one product that goes through one processing depart

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):

35,000

The June 1 work in process inventory consisted of 5,100 units 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 units were started into production. The June 30 work in process inventory consisted of 8,200 units that were 100% complete with respect to materials and 50% complete with respect to conversion.

Foundational 4-1

Required:

1. Prepare the journal entries to record the raw materials used in production and the direct labor cost incurred. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

a. Record the raw materials used in production

b. Record the direct labor cost incurred

2. Prepare the journal entry to record the overhead cost applied to production. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

a. Record the overhead cost applied to production

3. How many units were completed and transferred to finished goods during the period?

4. Compute the equivalent units of production for materials.

5. Compute the equivalent units of production for conversion.

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 ?

Explanation / Answer

1. Prepare the journal entries to record the raw materials used in production and the direct labor cost incurred.

2. Prepare the journal entry to record the overhead cost applied to production.

3. How many units were completed and transferred to finished goods during the period?

Unit completed and transferred out = 5100+37600-8200 = 34500 Units

4) equivalent unit of material = 34500+(8200*100%) = 42700 Units

5) Equivalent unit of conversion = 34500+(8200*50%) = 38600 Units

Date account and explanation debit credit Work in process 120205 Raw material 120205 (To record raw material used) Work in process 80500 Wages payable 80500 (To record direct labour incurred)

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