Flynn and Morgan Refiners began business on July 1. The following operations data are available for July and the one product the company produces: GallonsBeginning inventory -0- Started in July 310,000 Ending work-in-process inventory (80% complete) 30,000 Cost incurred in July were: Materials$250,000 Labor 52,000 Manufacturing overhead 154,000 All production at Flynn and Morgan is sold as it is produced (i.e., there are no finished goods inventories). Required:(a) Compute cost of goods sold for July.(b) What is the value of the work-in-process inventory on July 31?

Process Costing: Process Costing is used when there is mass production of similar products. The…

Answered: Flynn and Morgan Refiners began…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Flynn and Morgan Refiners began business on July 1. The following operations data are available for July and the one product the company produces:

	Gallons
Beginning inventory		-0-
Started in July		310,000
Ending work-in-process inventory (80% complete)		30,000
Cost incurred in July were:
Materials	$	250,000
Labor		52,000
Manufacturing overhead		154,000

All production at Flynn and Morgan is sold as it is produced (i.e., there are no finished goods inventories).

Required:

(a) Compute cost of goods sold for July.
(b) What is the value of the work-in-process inventory on July 31?

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