MANAGERIAL ACCOUNTING

REQUIRED PROCESS COST HOMEWORK PROB.

Prof. R$.$S$.$ Claire

Sophco Inc. manufactures plastic bowls in a continuous manufacturing process. The company

uses a process costing system to value its inventories and cost of goods sold. During April the

company put $37,000$ pounds of plastic into production. It takes $6$ ounces of plastic to

manufacture one bowl. The plastic cost $$1\mathrm{.}20$ per pound. The company spent $$150,000$ on

direct labor and $$275,000$ and factory overhead during April. At the end of the month, $80,000$

bowls had been completed and transferred to the finished goods warehouse. $65,000$ bowls

were sold for a total of $$685,000.$ The bowls that were still in the factory were $100\%$ complete

as to raw material, and $65\%$ completed as to labor and manufacturing overhead.

Required:

Determine the equivalent units of production and using $"T"$ accounts the ending inventory in

work in process and finished goods and the Cost of Goods Sold. Determine the gross profit of

Sophco Inc. for April. Use the template below or a spreadsheet ie$.$ Excel etc.

UNITS IN WIP INV.

FG INVENTORY

COGS