Van Goe produces paints. On January 1, it had no work-in-process inventory. It s

Question

Van Goe produces paints. On January 1, it had no work-in-process inventory. It starts production of 300,000 gallons of paint in January and completes 240,000 gallons. The costs of the resources used by Van Goe in January consist of the following: The production supervisor estimates that the ending work in process is 80 percent complete. Compute the cost of paint transferred to finished goods and the amount in work-in-process ending inventory as of January 31. (Do not round intermediate calculations.)

Explanation / Answer

Explanation

Costs

Materials $411,000

Conversion Costs $525,000

Total Cost Incurred $936,000

Cost per Equivallent Unit= $3.25 ( $936,000/288,000 Equivalent units)

Cost of paint transffered to finished goods= $780,000($3.25*240,000Equivalent units)

Work-in-Process ending Inventory= $156,000($3.25*48,000Equivalent units)

Thus Total of $780,000+ $156,000=  $936,000

Particular Total Transferred to finished goods Work in process January,31 Production Gallons 300,000 240,000 60,000 Percentage Complete % 100% 80% Equivalent Galoons 288,000 240,000 48,000

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.