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 5,000 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.

A. 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.)

B. 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.)

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

D. Compute the equivalent units of production for materials.

E. Compute the equivalent units of production for conversion.

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

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

H. What is the cost per equivalent unit for materials? (Round your answer to 2 decimal places.)

I. What is the cost per equivalent unit for conversion? (Round your answer to 2 decimal places.)

J. What is the cost of ending work in process inventory for materials? (Do not round intermediate calculations.)

K. What is the cost of ending work in process inventory for conversion?

L. What is the cost of materials transferred to finished goods? (Do not round intermediate calculations.)

M. What is the amount of conversion cost transferred to finished goods?

N. 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.)

O. What is the total cost to be accounted for? (Do not round intermediate calculations.) What is the total cost accounted for? (Do not round intermediate calculations.)

THANK YOU

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

Equivalent units and cost accounted for:

A) Debit Work in process $199500

Credit Raw Material $120000

Credit Labor Cost $79500

B) Debit Work in process $97000

Credit Manufacturing Overhead $97000

C) units were completed and transferred to finished goods during the period = 34500 units

D) 37500 units

E) 35200 units

F) $16000

G) $24525

H) $3.20 per unit

I) $5.01 per unit

J) $25600

K) $16080

L) $110400

M) $172420

N) Debit Finished Goods Inventory $282820

Credit Work in process Inventory $282820

O) the total cost to be accounted for $324500 and the total cost accounted for $324500.

Units Particulars Physical units Material Conversion cost 5000 Opening WIP 5000 - 2500 (50%) 37500 Units started and finished 29500 29500 29500 units transferred out 34500 Closing WIP 8000 8000 3200 (40%) 42500 Equivalent units 42500 37500 35200 Total cost incurred $120000 $176500 $296500 cost per equivalent unit $3.20 $5.01 Opening costs carried forward $16000 $12000 28000 total cost to be accounted for $324500 Addtional cost incurred 0 $12525 total cost of Opening WIP $16000 $24525 40525 Cost incurred on units started & finished $94400 $147795 $242195 cost of finished goods transferred out $110400 $172420 $282820 cost incurred on Closing WIP $25600 $16080 $41680 Total cost accounted for 324500

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