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Old Tyme Soda produces one flavor of a popular local soft drink. It had no work-in-process on October 31 in its only inventory account. During November, Old Tyme started 10,000 barrels. Work-in-process on November 30 is 1,200 barrels. The production supervisor estimates that the ending work-in- process inventory is 30% complete. An examination of Old Tyme's accounting records shows direct material costs of $18,072 and conversion costs of $20,400 for November. All production 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 November 30?

Old Tyme Soda produces one flavor of a popular local soft drink. It had no work-in-process on October 31 in its only inventory account. During November, Old Tyme started 10,000 barrels. Work-in-process on November 30 is 1,200 barrels. The production supervisor estimates that the ending work-in- process inventory is 30% complete. An examination of Old Tyme's accounting records shows direct material costs of $18,072 and conversion costs of $20,400 for November. All production 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 November 30?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Old Tyme Soda produces one flavor of a popular local soft drink. It had no work-in-process on October 31 in its only inventory account. During November, Old Tyme started 10,000 barrels. Work-in-process on November 30 is 1,200 barrels. The production supervisor estimates that the ending work-in- process inventory is 30% complete. An examination of Old Tyme's accounting records shows direct material costs of $18,072 and conversion costs of $20,400 for November. All production 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 November 30?
Transcribed Image Text:Old Tyme Soda produces one flavor of a popular local soft drink. It had no work-in-process on October 31 in its only inventory account. During November, Old Tyme started 10,000 barrels. Work-in-process on November 30 is 1,200 barrels. The production supervisor estimates that the ending work-in- process inventory is 30% complete. An examination of Old Tyme's accounting records shows direct material costs of $18,072 and conversion costs of $20,400 for November. All production 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 November 30?
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