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 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	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 units 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 units were started into production. The June 30 work in process inventory consisted of 9,000 units that were 100% complete with respect to materials and 50% complete with respect to conversion.

Foundational 4-15 (Algo)

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

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

Answer 1

15a) Total Cost to be accounted for = Beginning WIP+Cost added = 28000+151215+96500+114000 = 389715

15b) Equivalent unit of material = 32100+9000 = 41100

Cost per equivalent unit of material = (15240+151215)/41100 = 4.05

Equivalent unit of conversion = 32100+4500 = 36600

Cost per equivalent unit of conversion = (12760+96500+114000)/36600 = 6.10

Cost of unit transferred out = 10.15*32100 = 325815

Cost of ending WIP = (9000*4.05+4500*6.10) = 63900

Total Cost accounted for = 325815+63900 = 389715