Clopack Company manufactures one product that goes through one processing depart
ID: 2598594 • 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 of process costing. Its Work in Process T-account for the Mixing Department for June follows (all forthcoming questions pertain to June):
30,000
The June 1 work in process inventory consisted of 4,800 units with $17,140 in materials cost and $12,860 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, 37,300 units were started into production. The June 30 work in process inventory consisted of 8,000 units that were 100% complete with respect to materials and 50% complete with respect to conversion.
11. What is the cost of ending work in process inventory for conversion?
12. What is the cost of materials transferred to finished goods?
13. What is the amount of conversion cost transferred to finished goods?
14. 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.)
15-a. What is the total cost to be accounted for?
15-b. What is the total cost accounted for?
Work in Process—Mixing Department June 1 balance30,000
Completed and transferredto Finished Goods ? Materials 142,840 Direct labor 91,500 Overhead 109,000 June 30 balance ?
Explanation / Answer
Units Completed and transferred to Finished Goods: pounds Work in process, June 1. 4800 started in production during the year 37300 Total units in process 42100 Deducts work in process June, 30 -8000 Completed and transfer during month 34100 Equivalent units/pounds Units transfer out 34100 Work in process ending 8000*100% completed 8000 Total Equivalent units of production for material 42100 pounds Units transfer out 34100 Work in process ending 8000*50% 4000 Equivalent units of production for conversion 38100 Material Conversion Cost of beginning work in process $ 17,140 $ 12,860 Cost added during the Period 142,840 200,500 Total cost $ 159,980 $ 213,360 ÷ equivalent units 42100 38100 Cost per equivalent units $ 3.80 $ 5.60 11 What is the cost of ending work in process inventory for conversion? Equivalent unit of production ending inventory 8000 x 50% 4000 units Cost Per Equivalent unit $5.60/unit Cost of ending work in process inventory $22,400 12 What is the cost of materials transferred to finished goods? Units Transferred out 34100units Cost Per Equivalent unit $3.80/unit Total Cost transferred to finished goods $129,580 13 What is the amount of conversion cost transferred to finished goods? Units Transferred out 34100units Cost Per Equivalent unit $5.60/unit Total Cost transferred to finished goods $190,960 14 Finished Goods Inventory (34100 x (3.8+5.6)) $ 320,540 Work In Process Inventory $ 320,540 15a What is the total cost to be accounted for? $373,340 Material Conversion Total Cost of beginning work in process $ 17,140 $ 12,860 $ 30,000 Cost added during the Period 142,840 200,500 $ 343,340 Total cost $ 159,980 $ 213,360 $ 373,340 15b What is the total cost accounted for? transferred out (34100 X 9.4) 320540 ending WIP(8000 X 3.8 +4000 X 5.6) 52800 373340
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