What is the cost of units transferred to finished goods for conversion? Clopack

Question

What is the cost of units transferred to finished goods for conversion?

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): 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. Required: What is the amount of conversion cost transferred to finished goods? (Do not round intermediate calculations.) Cost of units transferred to finished goods for conversion $

Explanation / Answer

The answer is $188,025. Beginning WIP- 5,900 Started during the period- 38,400 Total units to account for- 44,300 Equivalent Units Completed and transferred out during the period- 34,500 Ending work in process- 4,900 (9,800 units 50% complete with respect to conversion) Equivalent units- 39,400 Cost per equivalent unit Beginning work in process- $20,230 Costs added during the period- $194,500 Total cost to account for- $214,730 Equivalent units- 39,400 Cost per equivalent unit- $5.45 Assignment of cost Completed and transferred out during the period- $188,025 (34,500 x $5.45) *These are only the conversion costs. No computations required for direct materials.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.