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 $1.20 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 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.

	QUTY	% COMP	EQ UTS	UTS TRANSF	TOTAL EQ. UTS	TOTAL COST	COST / EQ UT
RM
DL
MFG OH

Answer rating: 100% (QA)

Unit in WIP QT COMP EQ UTS UTS TRANSF TOTAL EQ UTS Total Cost ... View the full answer