(Solution) - Smith and Blarney Refiners began business on July 01 The -(2025 Original AI-Free Solution)

Paper Details

Smith and Blarney Refiners began business on July 01. The following operations data are available for July and the one product the company produces:
Gallons
Beginning inventory
Started in July .........................................................................310000
Ending work-in-process inventory (80% complete) .................30000

Costs incurred in July were:
Materials ...............................................................................$250,000
Labor ......................................................................................$52,000
Manufacturing overhead ......................................................$154,000

All production at Smith and Blarney is sold as it is produced (i.e., there are no finished goods inventories).

Required:
(a) Compute cost of goods sold for July.
(b) What is the value of the work-in-process inventory on July 31?