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): June 1-balance Materials Direct labour Overhead June 30-balance The June 1 work in process inventory consisted of 5,600 kilograms with $21,270 in materials cost and $18,730 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, 38,100 kilograms were started into production. The June 30 work in process inventory consisted of 9,200 kilograms that were 100% complete with respect to materials and 50% complete with respect to conversion. Work in Process-Mixing Department $ 40,000 Completed and transferred to finished goods ? 131,680 85,500 103,000 Required: 1. Prepare the journal entries to record the raw materials used in production and the direct labour cost incurred. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet
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): June 1-balance Materials Direct labour Overhead June 30-balance The June 1 work in process inventory consisted of 5,600 kilograms with $21,270 in materials cost and $18,730 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, 38,100 kilograms were started into production. The June 30 work in process inventory consisted of 9,200 kilograms that were 100% complete with respect to materials and 50% complete with respect to conversion. Work in Process-Mixing Department $ 40,000 Completed and transferred to finished goods ? 131,680 85,500 103,000 Required: 1. Prepare the journal entries to record the raw materials used in production and the direct labour cost incurred. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Question
Transcribed Image Text: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):
June 1-balance
Materials
Direct labour
Overhead
June 30-balance
The June 1 work in process inventory
consisted of 5,600 kilograms with $21,270 in
materials cost and $18,730 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, 38,100 kilograms were started
into production. The June 30 work in process
inventory consisted of 9,200 kilograms that
were 100% complete with respect to materials
and 50% complete with respect to conversion.
View transaction list
Required:
1. Prepare the journal entries to record the raw
materials used in production and the direct
labour cost incurred. (If no entry is required
for a transaction/event, select "No journal
entry required" in the first account field.)
Journal entry worksheet
A
Work in Process-Mixing Department
$ 40,000 Completed and transferred to finished goods
131,680
85,500
103,000
B
Record the raw materials used in production
Note: Enter debits before credits.
Transaction
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
?
>
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