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 Pro- cess 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 120,000 79,500 97,000 Direct labor Overhead June 30 balance The June 1 work in process inventory consisted of 5,000 pounds with $16,000 in materials cost and $12,000 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 50% complete with respect to conversion. During June, 37,500 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 40% complete with respect to conversion. Required: 1. Prepare the jourmal entries to record the raw materials used in production and the direct labor cost incurred. 2. Prepare the journal entry to record the overhead cost applied to production. 3. How many units were completed and transferred to finished goods during the period?
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 Pro- cess 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 120,000 79,500 97,000 Direct labor Overhead June 30 balance The June 1 work in process inventory consisted of 5,000 pounds with $16,000 in materials cost and $12,000 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 50% complete with respect to conversion. During June, 37,500 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 40% complete with respect to conversion. Required: 1. Prepare the jourmal entries to record the raw materials used in production and the direct labor cost incurred. 2. Prepare the journal entry to record the overhead cost applied to production. 3. How many units were completed and transferred to finished goods during the period?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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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 Pro-
cess 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
120,000
Direct labor
Overhead
79,500
97,000
June 30 balance
?
The June 1 work in process inventory consisted of 5,000 pounds with $16,000 in materials cost
and $12,000 in conversion cost. The June 1 work in process inventory was 100% complete
with respect to materials and 50% complete with respect to conversion. During June, 37,500
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 40% complete with respect to
conversion.
Required:
1. Prepare the joumal entries to record the raw materials used in production and the direct labor
cost incurred.
2. Prepare the journal entry to record the overhead cost applied to production.
3. How many units were completed and transferred to finished goods during the period?
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