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?