None Old Tyme Soda produces one flavor of a popular local soft drink.It had no work-in-process on October 31 in its only inventoryaccount. During November, Old Tyme started 10,000 barrels.Work-in-process on November 30 is 1,200 barrels. Theproduction supervisor estimates that the ending work-in-process inventory is 30% complete. An examination of OldTyme's accounting records shows direct material costs of$18,072 and conversion costs of $20,400 for November. Allproduction 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 November30?

Step 1: Define Work in processWork in process denotes partly finished goods. These goods are also…

Answered: Old Tyme Soda produces one flavor of a…

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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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
Joplin Corporation produces syrups that it sells to candy makers. On November 1, it had no work-in-process inventory. It started production of 43,300 gallons of syrup in November and completed production of 41,000 gallons. The costs of the resources used by Joplin in November consist of the following: Materials $ 47,512 Conversion costs (labor and overhead) 54,200 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.)
Joplin Corporation produces syrups that it sells to candy makers. On November 1, it had no work-in-process inventory. It started production of 43,500 gallons of syrup in November and completed production of 41,000 gallons. The costs of the resources used by Joplin in November consist of the following: Materials $ 57,200 Conversion costs (labor and overhead) 53,300 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.
The production supervisor estimates that the ending work-in-process is 16 percent complete. Compute the cost of paint transferred to finished goods and the amount in work-in-process inventory as of July 31.
The Ivam Department transferred 6,000 units to the finished goods storeroom for a month. There was no beginning work in process inventory, but 800 units were still in process at the end of the month and were 70% complete, and production costs incurred totaled $21,320. Inventory costs would be determined using a unit cost of $____.
Bremen Fitness Products produces a sports drink. On October 1, it had no work-in-process inventory. It started production of 9,000 cases of the drink in October and shipped 7,800 cases to retailers. (Bremen holds no finished goods inventory.) The costs of the resources used by Bremen in October consist of the following. Materials $ 87,523 Conversion costs (labor and overhead) 134,975 Required: The production supervisor estimates that the ending work in process is 55 percent complete on October 31. Compute the cost of cases shipped and the amount in work-in-process ending inventory as of October 31. (Do not round intermediate calculations.)
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Cedargrove Cider processes and bottles apple cider for sale through retail and big box grocery outlets. It had no work in process on May 31 in its only inventory account. The company started 20,200 cases during June. On June 30, work in process is 5,100 cases. The production supervisor estimates that the ending work-in-process inventory is 60 percent complete. Cost records at Cedargrove recorded June production costs of $94,850 in materials cost and $118,500 in conversion costs. All production is sold as it is produced. Required: Compute cost of goods sold for June. What is the value of work-in-process inventory on June 30? The president tells the controller that the company has already met its income target for the quarter, which ends on June 30, but whether the target can be met next quarter is in doubt. The president asks the controller to change the production manager’s estimate about the ending work-in-process inventory to increase the probability the company can meet the…
Bremen Fitness Products produces a sports drink. On October 1, it had no work-in-process inventory. It started production of 13,800 cases of the drink in October and shipped 10,200 cases to retailers. (Bremen holds no finished goods inventory.) The costs of the resources used by Bremen in October consist of the following. Materials Conversion costs (labor and overhead) $ 87,523 247,427 Required: The production supervisor estimates that the ending work in process is 55 percent complete on October 31. Compute the cost of cases shipped and the amount in work-in-process ending inventory as of October 31. Note: Do not round intermediate calculations. Cost of cases shipped Work-in-process ending inventory
During March of the current year, Rolly Company purchased P3,500,000 raw materials. During the month, Reyes incurred P2,040,000 direct labor cost and applied 80% of direct labor cost. During the same month, there were changes in inventories as follows: Increase in raw materials P100,000; Decrease in work in process P150,000 and decrease in finished goods 75,000. If the goods available for sale is P7,500,000, what is the amount of finished goods at March 1? a.P203,000 b.P278,000 c.P 0 d.P 75,000

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