Exercise $6-34($Algo$)$ Basic Product Costing: Ethical Issues $($LO $6-1)$

Cedargrove Cider processes and bottles apple cider for sale through retail and big box grocery outlets. It had no work in process on

May $31$ in its only inventory account. The company started $20,300$ cases during June. On June $30,$ work in process is $5,200$ cases. The

production supervisor estimates that the ending work$-$in$-$process inventory is $60$ percent complete. Cost records at Cedargrove

recorded June production costs of $$94,950$ in materials cost and $$119,500$ in conversion costs. All production is sold as it is produced.

Required:

a$.$ Compute cost of goods sold for June.

b$.$ What is the value of work$-$in$-$process inventory on June $30?$

c$.$ The president tells the controller that the company has already met its income target for the quarter, which ends on June $30,$ but

whether the target can be met next quarter is in doubt. The president asks the controller to change the production manager's

estimate about the ending work$-$in$-$process inventory to increase the probability the company can meet the next quarter's income

target.

To comply with the president's request, would the controller raise or lower the estimated percentage complete from the $60$

percent estimate of the production supervisor?

What should the controller do$?$

Complete this question by entering your answers in the tabs below.

Compute cost of goods sold for June.

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.