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 Credit 28,000 Completed and transferred to Finished Goods 120,000 79,500 97,000 Equivalent units of production for conversion The June 1 work in process Inventory Includes 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 100% complete with respect to materials and 40% complete with respect to conversion. 5. Compute the equivalent units of production for conversion. 2

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
28,000
120,000
79,500
97,000
?
Equivalent units of production for conversion
5. Compute the equivalent units of production for conversion.
Credit
Completed and transferred to Finished Goods
The June 1 work in process Inventory Includes 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 100% complete with respect to materials and 40% complete with respect to conversion.
2
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 28,000 120,000 79,500 97,000 ? Equivalent units of production for conversion 5. Compute the equivalent units of production for conversion. Credit Completed and transferred to Finished Goods The June 1 work in process Inventory Includes 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 100% complete with respect to materials and 40% complete with respect to conversion. 2
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