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

Accounting Nov 30, 2020

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 30,000 Completed and transferred to Finished Goods Materials Direct labour Overhead 142,840 91,500 109,000 June 30-balance ? The June 1 work in process inventory consisted of 4,800 pounds with $17,140 in materials cost and $12,860 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, 37,300 pounds were started into production. The June 30 work in process inventory consisted of 8,000 pounds that were 100% complete with respect to materials and 50% complete with respect to conversion. 11. What is the cost of ending work in process inventory for conversion? (Do not round your intermediate calculations.) Cost of ending work-in-process inventory for conversion

Expert Solution

  Materials Conversion
Units completed and transferred out 34100 34100
Work in process, ending:    
8000 X 100% 8000  
8000 X 50%   4000
Equivalent units of production 42100 38100
     
  Materials Conversion
Work in process, June 1 17140 12860
Cost added during June 142840 200500
Total costs 159980 213360
Divide by Equivalent units of production 42100 38100
Cost per Equivalent unit 3.80 5.60
     
Work in process, ending units Conversion 4000  
X Conversion Cost per Equivalent unit 5.60  
Cost of ending work in process inventory for Conversion 22400  

 

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