Process Costing
Van Goe produces paints. On January 1, it had no work in process inventory. It starts production of 300,000 gallons of paint in January and completes 240,000 gallons. The costs of the resources used by Van Goe in January consist of the following:
|
Materials |
$328,800 |
|
Conversion costs (labor and overhead) |
420,000 |
Required
The production supervisor estimates that the ending work in process is 80 percent complete. Compute the cost of paint transferred to finished goods and the amount in work in process ending inventory as of January 31.