basic product costing kim amp smith refiners starts business on march 1 the followin 691013
Basic Product Costing
Kim & Smith Refiners starts business on March 1. The following operations data are available for March for the one lubricant it produces:
|
|
Gallons |
|
Beginning inventory |
–0– |
|
Started in March |
900,000 |
|
Ending work in process inventory (80% complete) |
100,000 |
Costs incurred in March follow:
|
Materials |
$188,000 |
|
|
Labor |
48,400 |
|
|
Manufacturing overhead |
98,000 |
|
All production at Kim & Smith is sold as it is produced (there are no finished goods inventories).
Required
a. Compute cost of goods sold for March.
b. What is the value of work in process inventory on March 31?