Question

Required information (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 Work in Process-Mixing Department 28,000 Completed and transferred to Finished Goods 148,905 94,500 112,000 Materials Direct labor Overhead June 30 balance The June 1 work in process inventory consisted of 4,500 units with $15.020 in materials cost and $12.980 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, 37,000 units were started into production. The June 30 work in process inventory consisted of 8,600 units that were 100% complete with respect to materials and 50% complete with respect to conversion, 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.) View transaction list Journal entry worksheet Record the transfer of costs from Work in Process to Finished Goods Note: Enter debits before credits Transaction General Journal Debit Credit Finished goods

Answer 1

Clopack Company The "units completed and transferred to finished goods" is computed as follows: Pounds Work in process, June 1 4500 Started into production during the month 37000 Total pounds in process 41500 Deduct work in process, June 30 -8600 Completed and transferred out during the month 32900 The equivalent units of production for materials and conversion are computed as follows: Equivalent Units Materials Conversion Units transferred out 32900 32900 Work in process, ending: 8,600 units x 100% 8600 8,600 units x 50% 4300 Equivalent units of production 41500 37200 The cost per equivalent unit for materials and conversion is computed as follows: Materials Conversion Total cost (a) 163925 219480 Equivalent units of production (b) 41500 37200 Cost per equivalent unit (a) (b) 5.9 3.95 The cost of materials and conversion transferred to finished goods is computed as follows: Materials Conversion Totals Units transferred out (a) 32900 32900 Cost per equivalent unit (b) 3.95 5.9 Cost of units transferred to finished goods (a) (b) 129955 194110 324065 The journal entry to record the transfer of costs from Work in Process to Finished Goods would be recorded as follows: Credit in $ Trans. 1 Particulars Finished Goods a/c Dr. To Work in Process-Mixing Debit in $ 324065 324065