Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Foundational Exercises [LO1, LO2, LO3, LO4, LO5] [The following information applies to the questions displayed below.] Clopack Company manufactures one product that goes

Required information

Foundational Exercises [LO1, LO2, LO3, LO4, LO5]

[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 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):

Work in ProcessMixing Department

Debit Side Credit

-------------------------------------------------------------------------------------------------------------------------------------------

June 1balance 28,000 Completed and transferred

to Finished Goods?

Materials 120,000

Direct labour 79,500

Overhead 97,000

---------------------------------------------------

June 30balance?

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 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.)

  • Record the direct labor cost incurred

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Value

Authors: Stephen Penman, S Penman

1st Edition

0231151187, 9780231151184

More Books

Students also viewed these Accounting questions

Question

2. Develop a good and lasting relationship

Answered: 1 week ago

Question

1. Avoid conflicts in the relationship

Answered: 1 week ago