Process Costing
Opech, Inc., produces oil and ships it in a pipeline. On May 1, it had no work in process inventory. It started production of 300 million barrels of oil in May and shipped 270 million barrels in the pipeline. The costs of the resources used by Opech in May consist of the following:
|
Materials |
$5,000 million |
|
Conversion costs (labor and overhead) |
$6,640 million |
Required
The production supervisor estimates that the ending work in process is 70 percent complete on May 31. Compute the cost of oil shipped in the pipeline and the amount in work in process ending inventory as of May 31.