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 Materials Direct labor Overhead June 30 balance Debit oundational 5-7 (Static) The June 1 work in process inventory consisted of 5,000 units 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 units were started into production. The June 30 work in process inventory consisted of 8,000 units that were 100% complete with respect to materials and 40% complete with respect to conversion. Total cost of conversion 28,000 120,000 79,500 97,000 Credit Completed and transferred to Finished Goods What is the cost of beginning work in process inventory plus the cost added during the period for conversic $
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.
![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
28,000
120,000
79,500
97,000
June 1 balance
Materials
Direct labor
Overhead
June 30 balance
Debit
The June 1 work in process inventory consisted of 5,000 units 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 units were started into
production. The June 30 work in process inventory consisted of 8,000 units that were 100% complete
with respect to materials and 40% complete with respect to conversion.
Foundational 5-7 (Static)
Total cost of conversion
Credit
Completed and transferred to
Finished Goods
7. What is the cost of beginning work in process inventory plus the cost added during the period for conversion?
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