Work-in-process inventory refers to wine that is undergoing fermentation. inventory refers to bottled wine that has not yet been sold. Selling and ad (period costs) include bottle, cork, and label purchases. 

a). Compute the cost of wine produced. 

b). Compute the cost of goods sold. 

c). Compute the net income.

 

  

Transcribed Image Text:

Keystone Winery produces a number of fine varietals. The following data pertains to 2008: Depreciation - wine making equipment Direct labor - grape picking and pressing Bottle, cork, and label purchases Crop insurance Cellar security system Utilities General & administrative expenses Indirect labor Indirect materials $5,000 48,000 11,000 1,120 5,000 3,000 22,000 3,000 300 220,000 115,405 climate control yeast, finings, etc. Sales revenue Selling & marketing expenses Inventories: Beginning grape inventory Beginning work-in-process inventory Beginning finished goods inventory Ending grape inventory Ending work-in-process inventory Ending finished goods inventory $2,000 5,050 22,300 3,000 7,600 18,300 prmontation Finished go Keystone Winery produces a number of fine varietals. The following data pertains to 2008: Depreciation - wine making equipment Direct labor - grape picking and pressing Bottle, cork, and label purchases Crop insurance Cellar security system Utilities General & administrative expenses Indirect labor Indirect materials $5,000 48,000 11,000 1,120 5,000 3,000 22,000 3,000 300 220,000 115,405 climate control yeast, finings, etc. Sales revenue Selling & marketing expenses Inventories: Beginning grape inventory Beginning work-in-process inventory Beginning finished goods inventory Ending grape inventory Ending work-in-process inventory Ending finished goods inventory $2,000 5,050 22,300 3,000 7,600 18,300 prmontation Finished go