Question

Required information The Foundational 15 (Algo) (L04-1, LO4-2, LO4-3, LO4-4, LO4-5) (The following information applies to the questions displayed below.) 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): June 1 balance Materials Direct labor Overhead June 30 balance Work in Process-Mixing Department 29,000 Completed and transferred to Finished Goods 145,275 92,500 110,000 ? The June 1 work in process inventory consisted of 4,700 units with $16,040 in materials cost and $12,960 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, 37,200 units were started into production. The June 30 work in process inventory consisted of 8,200 units that were 100% complete with respect to materials and 50% complete with respect to conversion.

Answer 1

Answer:

Credit 1. Transaction General Journal 1 Work in process-Mixing Department Raw materials Debit 145,275 145,275) 2 92,500 Work in process-Mixing Department Wages payable 92,500 2. 110,000 1 Work in process-Mixing Department Factory overhead 110,000 3. Units completed and transferred to finished goods Beginning inventory, units 4,700 Add: Units added during the year 37,200 Less: Ending inventory, units -8,200 Units completed and transferred out 33,700 4. Equivalent Units of production for materials % Particulars Units complete material Completed and transferred out 33,700 100 Ending work in process 8,200 100 Equivalent Units of production for materials EUP -material 33,700 8,200 41,900

Under weighted average method, the equivalent units are calculated only for units completed and transferred out and for ending units of work in process.