Question

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 11,900 barrels. Work-in-process on November 30 is 2150 barrels. The production supervisor estimates that the ending work-in-process inventory is 30 percent complete. An examination of Old Tyme's accounting records shows direct material costs of $26,233 and conversion costs of $29,900 for November. All production is sold as it is produced , entory on November 30 Required: a. Compute cost of goods sold for November b. What is the value of work-in-process inventory on November 30? c. The president tells the controller that stock analysts expect higher income for the month and asks the controller to change the production manager's estimate about the ending work-in-process inventory (1) If the controller wanted to comply with the president's request, would he raise or lower the estimated percentage complete from the 30 percent estimate of the production supervisor? (2) What should the controller do? Complete this question by entering your answers in the tabs below. ReqB Req A Reg C2 Reg C1 Compute cost of goods sold for November. (Do not round intermediate calculations.) Cost of goods sold

Answer 1

Answer:

Cost of goods sold =	Total number units sold * Total cost of goods sold per unit
	10,395 units * $ 4.71
	$ 48, 960.45
Working Note:
Direct material cost per unit =	$ 26,233 / 11,900 units
	$ 2.20
Conversion Cost per Unit =	$ 29,900 / 11,900 units
	$ 2.51
Total cost of goods sold per unit =	$ 2.2 +$ 2.51
	$ 4.71
Total number units sold	(11,900 - 2,150) units + (2150 units * 30%)
	9750 units +645 units
	10,395 units