June 1 balance 28,000 Materials..................................................................................... 120,000 Direct Labor......................................................................................79,500 Overhead...............
June 1 balance 28,000
Materials..................................................................................... 120,000
Direct Labor......................................................................................79,500
Overhead...........................................................................................97,000
Raw materials...……………………………………………………………….$45,000
Work in process...………………………………………………………… 20,000
Finished goods........................................................................................40,000
June 30 balance............??????
The company uses a plant wide rate to apply overhead. The overhead rate was based on an estimated over head cost of $640,000 and an estimated level of activity of 32,000 direct labor hours. The June work in progress inventory consisted of 5,000 pounds with 16,000 in materials cost and 12,000 in conversion cost. The June 1 work in progress 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 progress inventory consisted of 8,000 pounds that were 100% complete with respect to materials and 40% complete with respect to conversion.
1. Prepare the journal entry to record the overhead cost applied to production.
2. Compute the equivalent units of production for materials.
3. Compute the equivalent units of production for conversion.
4. What is the amount of of the cost of beginning work in progress inventory plus the cost added during the period for conversion?
5. What is the cost per equivalent unit for materials?
6. What is the cost per equivalent unit for conversion?
7. What is the cost of ending work in progress for materials?
8. What is the cost of materials transferred to finish goods?
9. What is the amount of conversion cost transferred to finished goods?
10. Prepare the journal entry to record the transfer of costs from Work in progress to Finished goods.
11. What is the total cost to be accounted for? what is the total cost accounted for?
Homework Answers
1.
| Account Titles | Debit | Credit |
| Work in Process Inventory | $ 97,000 | |
| Manufacturing Overhead | $ 97,000 |
2. Equivalent units of Production = Units transferred + Ending
WIP x Completion
Units transferred = 5000+37500-8000 = 34500
Equivalent units
Material = 34500 + 8000 x 100% = 42500 pounds
3.
Conversion = 34500 + 8000 x 40% = 37700 pounds
4.
| Costs to be accounted for | |
| Cost of beginning work in process | $ 28,000 |
| Cost added during production | $ 296,500 |
| Total Costs to be accounted for | $ 324,500 |
5. Cost per equivalent unit = (Beginning Cost + Cost added) /
Equivalent units of production
Material = ($16000+12000)/42500 = $3.20 per pound
6.
Conversion = ($12000+79500+97000)/37700 = $5 per pound
7. Cost of ending work in process for materials = 8000 x 100% x $3.20 = $25600
8. Cost of materials transferred to finished goods = 34500 x $3.20 = $110400
9. Cost of conversion transferred to finished goods = 34500 x $5 = $172500
10.
| Account Titles | Debit | Credit |
| Finished Goods Inventory | $ 282,900 | |
| Work in Process Inventory | $ 282,900 |
11.
| Costs to be accounted for | |
| Cost of beginning work in process | $ 28,000 |
| Cost added during production | $ 296,500 |
| Total Costs to be accounted for | $ 324,500 |
| Costs accounted for as follows | |
| Cost of Ending work in process | $ 41,600 |
| Cost of Units transferred | $ 282,900 |
| Total Costs accounted for | $ 324,500 |
Add Answer to:
June 1 balance 28,000
Materials.....................................................................................
120,000
Direct
Labor......................................................................................79,500
Overhead...............
Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials...
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1. Prepare the journal entries to record the raw materials used in production and the direct...
1. 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.)
2. 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.)
3. How many units were completed and transferred to finished
goods during...
Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials...
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): Work in Process—Mixing Department June 1 balance 28,000 Completed and transferred to Finished Goods ? Materials 120,000 Direct labor 79,500 Overhead 97,000 June 30 balance ?...
Problem: Clopack Company manufactures one product that goes through one processing department called Mixing. All raw...
Problem: 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): Work in Process—Mixing Department June 1 balance 28,000 Completed and transferred to Finished Goods ? Materials 120,000 Direct labor 79,500 Overhead 97,000 June 30 balance...
Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials...
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): Work in Process—Mixing Department June 1 balance 40,000 Completed and transferred to Finished Goods ? Materials 131,680 Direct labor 85,500 Overhead 103,000 June 30 balance ?...
The Foundational 15 - Chapter 4 - ACC 202 LO4-1, L04-2, LO4-3, L04-4, L04-5 Clopack Company...
The Foundational 15 - Chapter 4 - ACC 202 LO4-1, L04-2, LO4-3, L04-4, L04-5 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): Work in Process-Mixing Department June 1 balance 28,000 Completed and transferred...
Required: 1. a)Prepare the journal entries to record the raw materials used in production and the...
Required:
1. 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...
Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials...
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): Work in Process-Mixing Department June 1 balance 28,000 Completed and transferred to Finished Goods Materials 120,000 Direct labor 79,500 Overhead 97,000 June 30 balance The...
Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials...
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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): Work in Process—Mixing Department June 1 balance 32,000 Completed and transferred to Finished Goods Materials 141, 245 Direct labor 90,500 Overhead 108,000 June 30 balance...
1. 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.)
2. 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.)
3. How many units were completed and transferred to finished
goods during...
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Required:
1. 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...
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): Work in Process-Mixing Department June 1 balance 28,000 Completed and transferred to Finished Goods Materials 120,000 Direct labor 79,500 Overhead 97,000 June 30 balance The...
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