Question
Lukes Lubricants starts business on January 1. The following operations data are available for January for the one lubricant it produces. Gallons Beginning inventory 0
Lukes 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 | 154,000 |
| Ending work-in-process inventory (70% complete) | 12,000 |
Costs incurred in January follow.
| Materials | $ | 166,200 |
| Labor | 24,000 | |
| Manufacturing overhead | 73,000 | |
All production at Lukes is sold as it is produced (there are no finished goods inventories).
Required:
a. Compute cost of goods sold for January. (Do not round intermediate calculations.)
b. What is the value of work-in-process inventory on January 31? (Do not round intermediate calculations.)
Can you show me a step by step also please.
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Principles of Accounting
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
12th edition
978-1133603054, 113362698X, 9781285607047, 113360305X, 978-1133626985
