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 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.

1. Compute the equivalent units of production for conversion.   

2.

For materials, what is the sum of the cost of beginning work in process inventory plus the cost added during the period?

3. What is the cost per equivalent unit for materials?

4. What is the cost of ending work in process inventory for materials?

5.

What is the cost of materials transferred to finished goods?

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):

Explanation / Answer

Beginning work in process inventory 5,900 Completed & transferred 34,500 started during the year 38,400 Ending work in process 9,800 units to be accounted 44,300 units accounted for 44,300 Equivalent units % mat Materials % CC Conversion Completed & transferred 34,500 100% 34,500 100% 34,500 ending work in process 9,800 100% 9,800 50% 4900 44,300 44,300 39,400 cost per unit Materials CC Total Beginning work in process 22,770 20,230 43,000 cost added during the year 138,925 194500 333,425 total cost 161,695 214,730 376,425 equivalent units 44,300 39,400 cost per unti 3.65 5.45 cost of ending work in process inventory. materials 9,800 * 3.65 = 35770 conversion 4,900 * 5.45 = 26705 cost of ending work in process inventory. 62475 cost of goods transferred to finished goods materials 34,500 * 3.65 = 125925 conversion 34,500 * 5.45 = 188025 cost of ending work in process inventory. 313950 376425 1) Equivalent units of production for conversion 39,400 2) beginning + cost added for materials 161,695 3) cost per equivalent units for materials 3.65 4) cost of ending work in process for materials 35770 5) cost of materials transferred to finihsed goods 125925

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