Clopack Company manufactures one product that goes through one processing depart
ID: 2417801 • 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 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 5,000 pounds with $16,000 in materials cost and $12,000 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 50% complete with respect to conversion. During June 37,500 pounds were started into production. The June 30 work in process inventory consisted of 8,000 pounds that were 100% complete with respect to materials and 40% complete with respect to conversion.
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Prepare the journal entries to record the raw materials used in production and the direct labor cost incurred.
Prepare the journal entry to record the overhead cost applied to production.
How many units were completed and transferred to finished goods during the period?
Compute the equivalent units of production for materials.
Compute the equivalent units of production for conversion.
What is the amount of the cost of beginning work in process inventory plus the cost added during the period for materials?
What is the amount of the cost of beginning work in process inventory plus the cost added during the period for conversion?
What is the cost per equivalent unit for materials?
What is the cost per equivalent unit for conversion?
What is the cost of ending work in process for materials?
What is the cost of ending work in process for conversion?
What is the cost of materials transferred to finished goods?
What is the amount of conversion cost transferred to finished goods?
Prepare the journal entry to record the transfer of costs from Work in Process to Finished Goods.
What is the total cost to be accounted for? What is the total cost accounted for?
Explanation / Answer
Answer:1 Prepare the journal entries to record the raw materials used in production and the direct labor cost incurred.
Work in Process-Mixing A/C Dr. $120000
To Raw material inventory A/c $120000
Work in Process-Mixing A/C Dr. $79500
To Wages Payable A/c $79500
Answer:2 Prepare the journal entry to record the overhead cost applied to production.
Work in Process-Mixing A/C Dr. $97000
To Manufacturing overhead A/c $97000
Answer:3 How many units were completed and transferred to finished goods during the period?
Answer:4Compute the equivalent units of production for materials.
=34500+8000=42500
Answer:5 Compute the equivalent units of production for conversion.
=34500+8000*40%=37700
Answer:6 What is the amount of the cost of beginning work in process inventory plus the cost added during the period for materials?
=16000+120000=180000
Answer:7 What is the amount of the cost of beginning work in process inventory plus the cost added during the period for conversion?
=12000+176500=188500
Answer:8 What is the cost per equivalent unit for materials?
=180000/42500=$4.235
Answer:9 What is the cost per equivalent unit for conversion?
=188500/37700=$5
Answer:10 What is the cost of ending work in process for materials?
=8000*4.235=33882
Answer:11 What is the cost of ending work in process for conversion?
=3200*5=16000
Finished Goods Pounds Opening WIP 5000 Started into production 37500 Total pounds in process 42500 Less: Ending WIP 8000 Completed and transferred out 34500Related Questions
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