Question: Grey Giant Products Inc cans peas and uses an average

Grey Giant Products Inc. cans peas and uses an average cost system. For the month of November, the company showed the following:
Peas completed and canned . . . . . . . . . . . . . . . . . 245,000 lb
Peas in process at the end of November:
100% complete as to peas, 50% complete
as to labor and overhead, 0% complete as
to cans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,500 lb
Cost data:
Peas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.10 per equivalent pound
Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.25 per equivalent pound
Overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.15 per equivalent pound
Cans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.07 per can
Each can contains 16 oz, or 1 lb, of peas.

Required:
1. Calculate the cost of the completed production for November.
2. Show the detailed cost of the ending inventory for November.


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  • CreatedMay 05, 2014
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