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Clopack Company manufactures one product that goes through one processing department called...

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 to account for units and costs. 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 28,000 Completed and transferred to Finished Goods ?
Materials 151,215
Direct labor 96,500
Overhead 114,000
June 30 balance ?

The June 1 work in process inventory consisted of 4,300 pounds with $15,240 in materials cost and $12,760 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, 36,800 pounds were started into production. The June 30 work in process inventory consisted of 9,000 pounds that were 100% complete with respect to materials and 50% complete with respect to conversion.

Required:

1-a) Prepare the journal entries to record the raw materials used in production and 1-b) the direct labor cost incurred. (options i am given as names for entries include: Accounts Payable, Accounts receivable, Cost of goods sold, finished goods, manufacturing overhead, purchases of raw materials, raw materials inventory, wages payable, work in process-mixing.)

2) Prepare the journal entry to record the overhead cost applied to production. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3) How many units were completed and transferred to finished goods during the period?

4) Compute the equivalent units of production for materials.

5) Compute the equivalent units of production for conversion.

6) For materials, what is the sum of the cost of beginning work in process inventory plus the cost added during the period?

7) For conversion, what is the sum of the cost of beginning work in process inventory plus the cost added during the period?

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

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

10) What is the cost of ending work in process inventory for materials? (Do not round intermediate calculations.)

11) What is the cost of ending work in process inventory for conversion?

12) What is the cost of materials transferred to finished goods? (Do not round intermediate calculation.)

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-a) What is the total cost to be accounted for?

15-b) What is the total cost accounted for?

Weighted-average Method

The weighted-average method is a process costing method of calculating the costs and equivalent units in production. All completed units are considered as fully completed. No distinction is made if part of the completed units came from the beginning inventory or started during the month. In addition, all costs whether coming from the beginning inventory or added during the month are combined and spread over all the equivalent units of the completed and ending work in process inventory.

Answer and Explanation:


1-a) Journal entry to record the raw materials used in production:

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