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):

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

Hi,

Please find the answer as follows:

Part 15-a

Cost of Opening WIP Inventory = 28000

Add Costs Added to Production during the Period = 296500

Total Cost to be Accounted For = 324500

Answer for 15-a is 324500.

Part 15-b

Cost of Opening WIP Inventory = 41600

Add Costs Added to Production during the Period = 282900

Total Cost to be Accounted For = 324500

Answer for 15-a is 324500.

Notes:

Units Transferred Out

Work in Process, June 1 = 5000

Add Started into Production during the Month = 37500

Less Work in Process, June 30 = 8000

Completed and Transferred During the Month = 34500

Cost Per Equivalent Unit for Material = Total Cost/Equivalents Units of Production

Total Cost

Cost of Opening WIP = 16000

Cost Added During the Month = 120000

Total Cost = 136000

Equivalent Units of Production = 42500

Cost Per Equivalent Unit for Material = 136000/42500 = 3.2

Cost of Material Transferred to Finished Goods = Units Transferred Out*Cost Per Equivalent Unit for Material = 34500*3.2 = 110400

Cost Per Equivalent Unit for Material = Total Cost/Equivalents Units of Production

Total Cost of Conversion

Cost of Opening WIP = 12000

Cost Added During the Month = 176500 (79500 + 97000)

Total Cost = 188500

Equivalent Units of Production = 37700

Cost Per Equivalent Unit for Material = 188500/37700 = 5

Cost of Conversion Transferred to Finished Goods = Units Transferred Out*Cost Per Equivalent Unit for Conversion = 34500*5 = 172500

Total Costs for 15-b = 110400 + 172500 = 282900

Thanks.

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