Question:
Cost of completed units and ending inventory
Gold Giant Products, Inc., cans peas and uses an average cost system. For the month of November, the company showed the following:
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Peas completed and canned
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245,000 pounds
|
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Peas in process at the end of November: 100%
complete as to peas, 50% complete
as to labor and overhead, 0% complete as to cans
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16,500 pounds
|
|
Cost data:
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|
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Peas
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$0.10 per equivalent pound
|
|
Labor
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$0.25 per equivalent pound
|
|
Overhead
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$0.15 per equivalent pound
|
|
Cans
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$0.07 per can
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Each can contain 16 oz, or 1 lb, of peas.
Required:
1. Calculate the cost of the completed production for November.
2. Show the detailed cost of the ending inventory for November.