sherlockhomes

sherlockhomes

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Mahatma Gandhi University - Kerala

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Clopack Company manufactures one product that goes through one processing department calledĀ 
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 theĀ 
Mixing Department for June follows (all forthcoming questions pertain to June):
LO4ā€“1, LO4ā€“2, LO4ā€“3,Ā 
LO4ā€“4, LO4ā€“5
Work in Processā€”Mixing Department
June 1 balance 28,000 Completed and transferredĀ 
to Finished Goods ?
Materials 120,000
Direct labor 79,500
Overhead 97,000
June 30 balance ?
The June 1 work in process inventory consisted of 5,000 units with $16,000 in materials cost andĀ 
$12,000 in conversion cost. The June 1 work in process inventory was 100% complete with respectĀ 
to materials and 50% complete with respect to conversion. During June, 37,500 units were startedĀ 
into production. The June 30 work in process inventory consisted of 8,000 units that were 100%Ā 
complete with respect to materials and 40% complete with respect to conversion.
Required:
1. Prepare the journal entries to record the raw materials used in production and the direct laborĀ 
cost incurred.
2. Prepare the journal entry to record the overhead cost applied to production.
3. How many units were completed and transferred to finished goods during the period?
4. Compute the equivalent units of production for materials.
Final PDF to printer
166 Chapter 4
gar47783_ch04_148-189.indd 166 09/12/19 04:59 PM
5. Compute the equivalent units of production for conversion.
6. What is the cost of beginning work in process inventory plus the cost added during theĀ 
period for materials?
7. What is the cost of beginning work in process inventory plus the cost added during theĀ 
period for conversion?
8. What is the cost per equivalent unit for materials?
9. What is the cost per equivalent unit for conversion?
10. What is the cost of ending work in process inventory for materials?
11. What is the cost of ending work in process inventory for conversion?
12. What is the cost of materials transferred to finished goods?
13. What is the amount of conversion cost transferred to finished goods?
14. Prepare the journal entry to record the transfer of costs from Work in Process to Finished Goods.
15. What is the total cost to be accounted for? What is the total cost accounted for?

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