Old Tyme 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, Old Tyme started 10,000 barrels. Work-in-process on November 30 is 1,200 barrels. The production supervisor estimates that the ending work-in- process inventory is 30% complete. An examination of Old Tyme's accounting records shows direct material costs of $18,072 and conversion costs of $20,400 for November. All production is sold as it is produced. Required: A. Compute the cost of goods sold for November. B. What is the value of work-in-process inventory on November 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
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...
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Old Tyme 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, Old Tyme started 10,000 barrels.
Work-in-process on November 30 is 1,200 barrels. The
production supervisor estimates that the ending work-in-
process inventory is 30% complete. An examination of Old
Tyme's accounting records shows direct material costs of
$18,072 and conversion costs of $20,400 for November. All
production is sold as it is produced.
Required:
A. Compute the cost of goods sold for November.
B. What is the value of work-in-process inventory on November
30?
Transcribed Image Text:Old Tyme 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, Old Tyme started 10,000 barrels. Work-in-process on November 30 is 1,200 barrels. The production supervisor estimates that the ending work-in- process inventory is 30% complete. An examination of Old Tyme's accounting records shows direct material costs of $18,072 and conversion costs of $20,400 for November. All production is sold as it is produced. Required: A. Compute the cost of goods sold for November. B. What is the value of work-in-process inventory on November 30?
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