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?