Required: 1. Prepare the journal entries to record the raw materials used in production and the direct labor cost incurred. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Required: 1. Prepare the journal entries to record the raw materials used in production and the direct labor cost incurred. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
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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):
June 1 balance
Materials
Direct labor
Overhead
June 30 balance.
Debit
Work in Process-Mixing Department
View transaction list
27,000
151, 13
95,500
113,000
?
The June 1 work in process inventory consisted of 4,400 units with $14,100 in materials cost and $12,900 in conve
cost. The June 1 work in process inventory was 100% complete with respect to materials and 60% complete with respect
to conversion. During June, 36,900 units were started into production. The June 30 work in process inventory consisted
of 8,800 units that were 100% complete with respect to materials and 50% complete with respect to conversion.
Required:
1. Prepare the journal entries to record the raw materials used in production and the direct labor cost incurred. (If no entry is required
for a transaction/event, select "No journal entry required" in the first account field.)
Journal entry worksheet
Credit
Completed and transferred to
Finished Goods
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Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
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):
June 1 balance
Materials
Direct labor
Overhead
June 30 balance.
Debit
Work in Process-Mixing Department
View transaction list
27,000
151, 13
95,500
113,000
?
The June 1 work in process inventory consisted of 4,400 units with $14,100 in materials cost and $12,900 in conve
cost. The June 1 work in process inventory was 100% complete with respect to materials and 60% complete with respect
to conversion. During June, 36,900 units were started into production. The June 30 work in process inventory consisted
of 8,800 units that were 100% complete with respect to materials and 50% complete with respect to conversion.
Required:
1. Prepare the journal entries to record the raw materials used in production and the direct labor cost incurred. (If no entry is required
for a transaction/event, select "No journal entry required" in the first account field.)
Journal entry worksheet
Credit
Completed and transferred to
Finished Goods
< Prev
1 2
3
***
15
of 15
C
Next >
Transcribed Image Text:View transaction list
Journal entry worksheet
<
1
Record the raw materials used in production.
2
Note: Enter debits before credits.
Transaction
1
Record entry
General Journal
Clear entry
Debit
S
Credit
View general journal
‒‒‒
Expert Solution
Step 1
Answer:
Explanation: 1
The raw materials used in production during June were $151,100, as given in the Work in Process T-account. Therefore, we will debit the Raw Materials Inventory account and credit the Work in Process-Mixing Department account.
Explanation: 2
The direct labor cost incurred during June was $95,500, as given in the Work in Process T-account. Therefore, we will debit the Work in Process-Mixing Department account and credit the Wages Payable account.
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