Kim & Smith Refiners starts business on March 1. The following operations data are available for March
Question:
Kim & Smith Refiners starts business on March 1. The following operations data are available for March for the one lubricant it produces:
Gallons
Beginning inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . –0–
Started in March . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900,000
Ending work-in-process inventory (80% complete) . . . 100,000
Costs incurred in March follow:
Materials . . . . . . . . . . . . . . . . . . . . . . . . $188,000
Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,400
Manufacturing overhead . . . . . . . . . . . . 98,000
All production at Kim & Smith is sold as it is produced (there are no finished goods inventories).
Required
a. Compute cost of goods sold for March.
b. What is the value of work-in-process inventory on March 31?
Step by Step Answer:
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher