Sanchez & Company produces paints. On July 1, it had no work-in-process inventory. It starts production of 150,000 gallons of paint in July and completes 120,000 gallons. The costs of the resources used by Sanchez in July consist of the following Materials Conversion costs (labor and overhead) $137,000 175,000 Required: 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 ending inventory as of July 31. (Do not round Intermedlate calculations.) Cost of paint transferred to finished goods Work-in-process ending inventory

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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. 

**Sanchez & Company Paint Production Analysis**

Sanchez & Company produces paints. On July 1, it had no work-in-process inventory. It starts production of 150,000 gallons of paint in July and completes 120,000 gallons. The costs of the resources used by Sanchez in July consist of the following:

- **Materials**: $137,000
- **Conversion costs (labor and overhead)**: $175,000

**Required:**

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. *(Do not round intermediate calculations.)*

**Cost of paint transferred to finished goods**: [Enter your calculation here]

**Work-in-process ending inventory**: [Enter your calculation here]
Transcribed Image Text:**Sanchez & Company Paint Production Analysis** Sanchez & Company produces paints. On July 1, it had no work-in-process inventory. It starts production of 150,000 gallons of paint in July and completes 120,000 gallons. The costs of the resources used by Sanchez in July consist of the following: - **Materials**: $137,000 - **Conversion costs (labor and overhead)**: $175,000 **Required:** 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. *(Do not round intermediate calculations.)* **Cost of paint transferred to finished goods**: [Enter your calculation here] **Work-in-process ending inventory**: [Enter your calculation here]
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