Answer:
Clopack Company
1-a) Journal entries to record raw materials used in production
Debit Work in Process $151,215
Credit Raw materials $151,215
To record the cost of raw materials used in production.
1-b) the direct labor cost incurred
Debit Work in Process $96,500
Credit Factory Labor $96,500
To record the cost of direct labor costs.
2. Journal entry to record applied overhead cost
Debit Work in Process $114,000
Credit Manufacturing Overhead $114,000
To apply overhead to production.
3. Units completed and transferred to Finished Goods:
= 32,100 pounds
4. Equivalent units of production for materials:
= 41,100
5. Equivalent units of production for conversion:
= 37,500
6. Total cost of materials (beginning WIP and cost added):
= $166,455
7. Total cost of conversion (beginning WIP and cost added):
= $223,250
8. The cost per equivalent unit for materials:
= $4.05
9. The cost per equivalent unit for conversion:
= $5.95
10. The cost of ending WIP for materials:
= $36,450
11. The cost of ending WIP for conversion:
= $32,130
12. The cost of materials transferred to finished goods:
= $130,005
13. The amount of conversion transferred to finished goods:
= $190,995
14. Journal entry to record the transfer of costs from WIP to Finished Goods:
Debit Finished Goods $321,000
Credit Work in Process $321,000
To record the manufacturing cost transferred to Finished Goods.
15-a) The total cost to be accounted for:
= $389,715
16-b) The total cost accounted for:
= $389,580
Explanation:
a) Data and Calculations:
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 WIP =4,300 pounds with $15,240 in materials cost (100%) and $12,760 in conversion cost (60%).
Started in June 36,800
June 30 WIP = 9,000 pounds, materials (100%) and conversion (50%)
Units Materials Conversion Total
Beginning Work in Process 4,300 $15,240 $12,760 $28,000
Started in June 36,800 151,215 210,500 361,715
Total units and costs 41,100 $166,455 $223,250 $389,715
Ending Work in Process 9,000
Units transferred out 32,100
Equivalent units of production:
Materials Conversion
Units transferred out 32,100 32,100
Ending Work in Process 9,000 5,400
Total equivalent units 41,100 37,500
Cost per equivalent unit:
Materials Conversion
Total costs of production $166,455 $223,250
Total equivalent units 41,100 37,500
Cost per equivalent unit $4.05 $5.95
Cost assigned to:
Units transferred out $130,005 $190,995 $321,000
(32,100 * $4.05 and 32,100 * $5.95)
Ending Work in Process 36,450 32,130 $68,580
(9,000 * $4.05 and 5,400 * $5.95)
Total cost assigned $166,455 $223,125 $389,580
