Guess Company manufactures a variety of natural fabrics for the clothing industry. The following cost data are available for the month of January.

There were 80,000 units in process on January 1 (100% complete as to direct material and 60% complete as to conversion). The firms started 100,000 units into production in January. During January, 120,000 units were completed and transferred to finished goods. There was no finished goods inventory on January 1. We also know that 110,000 units were sold during January.
The units in ending work-in-process (EWIP) inventory on January 31 were 100% complete with respect to materials and 60% complete with respect to conversion.

Required:
a. How many units were there in ending work-in-process (WIP) inventory on January 31?
b. Calculate the total equivalent units with respect to conversion.
c. Compute the cost per equivalent unit for materials.
d. What is the cost of goods sold during January?
e. Suppose Guess also had beginning finished goods of 5,000 units with a unit cost of $2.90. Furthermore, Guess uses FIFO to value finished goods inventories. What is the cost of goods sold duringJanuary?

Transcribed Image Text:

Items Cost of WIP on 1/1/ XX Costs incurred during January 85,000 $200,000 Materials Conversion 95,000 112,000