Question

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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 32,000 Completed and transferred to Finished Goods ?
Materials 141,245
Direct labor 90,500
Overhead 108,000
June 30 balance ?


The June 1 work in process inventory consisted of 4,900 units with $17,380 in materials cost and $14,620 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, 37,400 units were started into production. The June 30 work in process inventory consisted of 7,800 units that were 100% complete with respect to materials and 50% complete with respect to conversion.

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.
8. What is the cost per equivalent unit for materials?
10. What is the cost of ending work in process inventory for materials?

Answer 1

Clopack Company

3. Units completed and transferred to finished goods during the period = 34,500 units

4. The equivalent units of production for materials = 42,300 units

5. The equivalent units of production for conversion = 38,400 units

8. The cost per equivalent unit for materials = $3.75

10. The cost of ending work in process inventory for materials = $29,250

Step-by-step explanation:

a) Data and Calculations:

T-account:

Work in Process - Mixing Department

Account Titles Debit Credit

June 1 balance 32,000

Materials 141,245

Direct labor 90,500

Overhead 108,000

Transferred to Finished Goods ?

June 30 balance ?

Units Materials Conversion Total

Beginning WIP 4,900 $17,380 $14,620 $32,000

Degree of completion 100% 60%

Started into production 37,400 141,245 198,500 339,745

Total units available 42,300 $158,625 $213,120 $371,745

Ending WIP 7,800 100% 50%

Transferred out 34,500

Equivalent units of production Materials Conversion

Started and completed 34,500 34,500 (100%) 34,500 (100%)

Ending WIP 7,800 7,800 (100%) 3,900 (50%)

Total equivalent units 42,300 38,400

Cost per equivalent unit: Materials Conversion

Total cost of production $158,625 $213,120

Total equivalent units 42,300 38,400

Cost per equivalent unit $3.75 $5.55

Cost assigned to: Materials Conversion Total

Units started and completed $129,375 $191,475 $320,850

Ending Work in Process 29,250 21,645 50,895

Total cost assigned $158,625 $213,120 $371,745