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):

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 June 1 work in process inventory consisted of 5,600 units with $21,270 in materials cost and $18,730 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, 38,100 units were started into production. The June 30 work in process inventory consisted of 9,200 units that were 100% complete with respect to materials and 50% complete with respect to conversion.

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

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

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

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

e.  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.)

f. What is the total cost to be accounted for?

g. What is the total cost accounted for?

Answer 1

Equivalent unit of material = 34500+(9200*100%) = 43700

Equivalent unit of conversion = 34500+(9200*50%) = 39100

Cost of beginning work in process and cost added for material = 21270+131680 = 152950

Cost of beginning work in process and cost added for conversion = 18730+85500+103000 = 207230

Cost per equivalent unit of material = 152950/43700 = 3.5

Cost per equivalent unit of conversion = 207230/39100 = 5.3

a) Ending work in process for material = 9200*3.5 = 32200

b) Ending work in process for conversion = 4600*5.3 = 24380

c) material COst under unit transferred out = 34500*3.5 = 120750

d) Conversion Cost under unit transferred out = 34500*5.3 = 182850

e) Journal entry

Date	account and explanation	debiit	credit
	Finished goods (182850+120750)	303600
	Work in process		303600
	(To record unit transferred out)

f) Total Cost to be accounted for = 40000+85500+103000+131680 = 360180

Total Cost accounted = 360180