New Masala Soda produces one flavor of a popular local soft drink. It had no work-in- process on October 31 in its only inventory account. During November, New Masala started 18,000 barrels. Work-in-process on November 30 is 4,300 barrels. The production supervisor estimates that the ending work-in-process inventory is 25% complete. An examination of New Masala's accounting records shows direct material costs of $29,029 and conversion costs of $31,100 for November. All production is sold as it is produced. Required: Compute the cost of goods sold for November. (Round your calculation to 2 Decimal) (1) $45,652 (2) $55,622 (3) $66,722 (4) $25,120 (5) $50,605

New Masala Soda produces one flavor of a popular local soft drink. It had no work-in- process on October 31 in its only inventory account. During November, New Masala started 18,000 barrels. Work-in-process on November 30 is 4,300 barrels. The production supervisor estimates that the ending work-in-process inventory is 25% complete. An examination of New Masala's accounting records shows direct material costs of $29,029 and conversion costs of $31,100 for November. All production is sold as it is produced. Required: Compute the cost of goods sold for November. (Round your calculation to 2 Decimal) (1) $45,652 (2) $55,622 (3) $66,722 (4) $25,120 (5) $50,605

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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All production is sold as it is produced?
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Queen Sales, Inc. has just completed its first year of operations. The company has not had any sales to date. Queen has incurred the following costs associated with its production as of December 31, Year 1:
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Twisted Pretzel, Inc. had beginning Work-in-Process Inventory (WIP) of $10,000 and makes only one product. It incurred the following costs during the year: Factory production worker wages $ 40,000 Direct materials 20,000 Allocated factory rent 60,000 Allocated factory utilities 70,000 Sales commissions 100,000 At the end of the year WIP totaled $ 4,000. Calculate the total costs of goods manufactured and transferred to Finished Goods Inventory.
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