Clopack Company manufactures one product that goes through one processing depart
ID: 2342637 • Letter: C
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.
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.)
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?
Work in Process—Mixing Department June 1 balance35,000
Completed and transferredto Finished Goods ? Materials 120,205 Direct labor 80,500 Overhead 98,000 June 30 balance ?
Explanation / Answer
Answer
Units Reconciliation
Units to account for:
Beginning WIP
5,100 [given]
Units started this period
37,600 [given]
Total Units to account for
42,700
Total Units accounted for:
Completed & Transferred out
34,500 [42700 – 8200]
Ending WIP
8,200 [given]
Total Units accounted for
42,700
EUP - Weighted Average Method
Units
% Material
EUP Materials
% Conversion
EUP - Conversion
Units TRANSFERRED
34,500
100%
34,500
100%
34,500
Units of ENDING WIP
8,200
100%
8,200
50%
4,100
Equivalent Units of Production
42,700
38,600
COST per EUP
Material
Conversion
Cost of Beginning WIP
$ 18,570.00
$ 16,430.00
Cost incurred during the period
$ 120,205.00
$ 178,500.00
Total Costs
Costs
$ 138,775.00
Costs
$ 194,930.00
Equivalent units of production
EUP
42,700
EUP
38,600
Cost per EUP
$ 3.25
$ 5.05
TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out
EUP
Cost per EUP
Total Cost
- Direct Materials
34,500
$ 3.25
$ 112,125.00
- Conversion
34,500
$ 5.05
$ 174,225.00
Total Cost transferred Out
$ 286,350.00 [USED in Journal Entry]
Costs of Ending WIP:
EUP
Cost per EUP
Total Cost
- Direct Materials
8,200
$ 3.25
$ 26,650.00
- Conversion
4,100
$ 5.05
$ 20,705.00
Total cost of ending WIP
$ 47,355.00
Total costs accounted for
$ 333,705.00
Accounts title
Debit
Credit
Finished Goods Inventory
$ 286,350.00
Work In Process - Mixing Department
$ 286,350.00
(to record transfer of cost from WIP to Finished Goods)
---15 (a)
Material
Conversion
Beginning WIP cost
$ 18,570.00
$ 16,430.00
Cost incurred
$ 120,205.00
$ 178,500.00 [80500 + 98000]
TOtal Costs
$ 138,775.00
Total Costs
$ 194,930.00
Total cost to be accounted for = 138775 + 194930 = $ 333,705
---15 (b)
TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out
EUP
Cost per EUP
Total Cost
- Direct Materials
34,500
$ 3.25
$ 112,125.00
- Conversion
34,500
$ 5.05
$ 174,225.00
Total Cost transferred Out
$ 286,350.00
Costs of Ending WIP:
EUP
Cost per EUP
Total Cost
- Direct Materials
8,200
$ 3.25
$ 26,650.00
- Conversion
4,100
$ 5.05
$ 20,705.00
Total cost of ending WIP
$ 47,355.00
Total costs accounted for
$ 333,705.00
Total cost accounted for = 286350 + 47355 = $ 333,705
Units Reconciliation
Units to account for:
Beginning WIP
5,100 [given]
Units started this period
37,600 [given]
Total Units to account for
42,700
Total Units accounted for:
Completed & Transferred out
34,500 [42700 – 8200]
Ending WIP
8,200 [given]
Total Units accounted for
42,700
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