Fresh Spark Beverages produces one flavor of a popular local drink. It had no work-in-process on March 31 in its only inventory account. During April, Fresh Spark started 15,000 barrels. Work-in-process on April 30 is 1,500 barrels. The production supervisor estimates that the ending work-in-process inventory is 40% complete. An examination of Fresh Spark's accounting records shows direct material costs of $25,200 and conversion costs of $28,800 for April. All production is sold as it is produced. Required: A. Compute the cost of goods sold for April. B. What is the value of work-in-process inventory on April 30?

Fresh Spark Beverages produces one flavor of a popular local drink. It had no work-in-process on March 31 in its only inventory account. During April, Fresh Spark started 15,000 barrels. Work-in-process on April 30 is 1,500 barrels. The production supervisor estimates that the ending work-in-process inventory is 40% complete. An examination of Fresh Spark's accounting records shows direct material costs of $25,200 and conversion costs of $28,800 for April. All production is sold as it is produced. Required: A. Compute the cost of goods sold for April. B. What is the value of work-in-process inventory on April 30?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 14E: For each of the following independent situations, calculate the missing values: 1. The Belen plant...

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An examination of Buckhorn Fabricators records reveals the following transactions: a. On December 31, the physical inventory of raw material was 9,950 gallons. The book quantity, using the weighted average method, was 10,000 gal @ .52 per gal. b. Production returned to the storeroom materials that cost 775. c. Materials valued at 770 were charged to Factory Overhead (Repairs and Maintenance), but should have been charged to Work in Process. d. Defective material, purchased on account, was returned to the vendor. The material returned cost 234. e. Goods sold to a customer, on account, for 5,000 (cost 2,500) were returned because of a misunderstanding of the quantity ordered. The customer stated that the goods returned were in excess of the quantity needed. f. Materials requisitioned totaled 22,300, of which 2,100 represented supplies used. g. Materials purchased on account totaled 25,500. Freight on the materials purchased was 185. h. Direct materials returned to the storeroom amounted to 950. i. Scrap materials sent to the storeroom were valued at an estimated selling price of 685 and treated as a reduction in the cost of all jobs worked on during the period. j. Spoiled work sent to the storeroom valued at a sales price of 60 had production costs of 200 already charged to it. The cost of the spoilage is to be charged to the specific job worked on during the period. k. The scrap materials in (i) were sold for 685 cash. Required: Record the entries for each transaction.
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Joplin Corporation produces syrups that it sells to candy makers. On November 1, it had no work-in-process inventory. It started production of 45,900 gallons of syrup in November and completed production of 44,000 gallons. The costs of the resources used by Joplin in November consist of the following: Materials $ 67,578 Conversion costs (labor and overhead) 54,300 Required: The production supervisor estimates that the ending work-in-process is 60 percent complete on November 30. Compute the cost of syrup completed and the cost of the syrup in work-in-process ending inventory as of November 30. (Do not round intermediate calculations.) Cost of syrup completed Work-in-process ending inventory
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