Clopack Company manufactures one product that goes through one processing depart
ID: 2545146 • 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.
What is the cost of ending work in process inventory 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Record the transfer of costs from Work in Process to Finished Goods
The following information applies to the questions displayed below.]
Explanation / Answer
10. Cost of ending work in process inventory for materials = 8000 x $3.20 = $25600
11. Cost of ending work in process inventory for conversion = 3200 x $5 = $16000
12. Cost of materials transferred to finished goods = 34500 x $3.20 = $110400
13. Amount of conversion cost transferred to finished goods = 34500 x $5 = $172500
14.
15-a. Total cost to be accounted for = Beginning work in process $28000 + Materials $120000 + Direct labor $79500 + Overhead $97000 = $324500
15-b. Total cost accounted for = Cost of ending work in process $41600 ($25600 + $16000) + Costs transferred to finished goods $282900 ($110400 + $172500) = $324500
Working:
General Journal Debit Credit Finished goods inventory (34500 x $8.20) 282900 Work in process-Mixing department 282900 (To record transfer to finished goods)Related Questions
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