Question

The following information applies to the questions displayed below.]

Answer 1

Answer:

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

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