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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	?

The June 1 work in process inventory consisted of 4,900 units with $17,380 in materials cost and $14,620 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, 37,400 units were started into production. The June 30 work in process inventory consisted of 7,800 units that were 100% complete with respect to materials and 50% complete with respect to conversion.

Find:

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

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

3. What is the cost of ending work in process inventory for materials? (Round your intermediate calculations to 2 places.)

4. What is the cost of ending work in process inventory for conversion? (Round your intermediate calculations to 2 places.)

5. What is the cost of materials transferred to finished goods? (Round your intermediate calculations to 2 places.)

6. What is the amount of conversion cost transferred to finished goods? (Round your intermediate calculations to 2 places.)

7. 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.)

8. a. What is the total cost to be accounted for?

b. What is the total cost accounted for?

Answer 1

Workings:

Workings Calculate the no. of units completed and transferred out as follows: Statement showing calculation of no. of units completed and transferred out Units introduced during the period 37,400 Add: Beginning WIP 4,900 Total units available for production 42,300 (37,400 +4,900) Less: No. of units in Ending WIP 7,800 No. of units completed and transferred out 34,500 (42,300 - 7,800) Workings Statement showing Calculation of equivalent units of production Units completed and transferred out Add: Units in ending WIP Stage completion (in %) Equivalent units in Beginning WIP Calculation Total equivalent units in production Material Conversion 34,500 34,500 7,800 7,800 100% 50% 7,800 3,900 (7800 X 100%)| (7800 X 50%) 42,300 38,400 (34,500+ (34,500 + 7,800) 3,900) Calculation

Workings:

Statement showing computations in process costing Material Conversion Cost of beginning work in process $ 17,380 $ 14,620 Costs added during the period: $ 141,245 $ 198,500 (90,500 + 108,000) Total cost to be accounted for: $ 158,625 $ 213,120 (17,380 + Calculation 141,245) (14,620 + 198,500) Equivalent units 42,300 38,400 Cost per equivalent unit 3.75 5.55 Calculation (158,625/42,300) (213,120/38,400) Ending WIP 7,800 7,800 Stage completion (in %) 100% 50% Equivalent units in ending WIP 7,800 3,900 Calculation (7800 X 100%) (7800 X 50%) Cost in ending WIP (no. of equivalent units in ending WIP X cost per equivalent unit) $ 29,250.00 $ 21,645.00 Calculation (7800 X 3.75) (3900 X 5.55) Units completed and transferred out 34,500 34,500 Cost of units completed and transferred out (units completed and transferred out X cost per equivalent unit) $ 129,375.00 $ 191,475.00 Calculation (34,500 X 3.75) (34,500 X 5.55)

Final Answers:

Question 1 From the above table, cost per equivalent unit of materials is $3.75 Question 2 The cost per equivalent unit of conversion is $5.55 Question 3 The cost of ending work in process inventory for materials is $29,250.00 Question 4 The cost of ending work in process inventory for conversion $21,645.00 Question 5 The cost of materials transferred to finished goods $129,375.00 Question 6 The amount of conversion cost transferred to finished goods $191,475.00