Luke's Lubricants starts business on January 1. The following operations data are available
For January for the one lubricant it produces:
Gallons
Beginning inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . -0-
Started in January . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900,000
Ending work-in-process inventory (80% complete). . . 100,000
Costs incurred in January follow:
Materials . . . . . . . . . . . . . . . . . . . . . . . . $564,000
Labor. . . . . . . . . . . . . . . . . . . . . . . . . . . 145,200
Manufacturing overhead . . . . . . . . . . . . 294,000
All production at Luke's is sold as it is produced (there are no finished goods inventories).
Required
a. Compute cost of goods sold for January.
b. What is the value of work-in-process inventory on January 31?