Question:
Lawrence Chemicals manufactures industrial solvents. On November 1, it has no work-in-process inventory. It starts production of 13,000 barrels of solvent in November and completes 8,000 barrels. The costs of the resources used by Lawrence in November consist of the following:
|
Materials
|
$223,000
|
|
Conversion costs
|
|
|
(labor and overhead)
|
272,000
|
|
Total
|
$495,000
|
The production supervisor estimates that the ending work in process is 60 percent complete. Compute the cost of solvent transferred to finished goods and the amount in work-in-process ending inventory as of November 30.