Question

Bremen fitness products produces a sports drink. on october 1, it had no work-in-process inventory. it started production of 15,400 cases of the drink in october and shipped 11,000 cases to retailers. (bremen holds no finished goods inventory.) the costs of the resources used by bremen in october consist of the following. materials $ 87,523 conversion costs (labor and overhead) 286,895 required: the production supervisor estimates that the ending work in process is 55 percent complete on october 31. compute the cost of cases shipped and the amount in work-in-process ending inventory as of october 31.

Answer 1

The cost of cases shipped is $168,488.10 and the amount in work-in-process ending inventory is $205,929.

Step-by-step explanation:

To calculate the cost of cases shipped and the amount in work-in-process ending inventory, we need to find the total costs incurred during production in October. The costs consist of materials and conversion costs. The materials cost is $87,523 and the conversion costs are $286,895. Therefore, the total cost incurred during production is $87,523 + $286,895 = $374,418.

To find the cost of cases shipped, we use the formula: Cost of cases shipped = Total cost incurred - Cost of work-in-process ending inventory. Since there is no work-in-process inventory at the beginning of October and the ending work-in-process is 55% complete, the cost of work-in-process ending inventory can be calculated as: Cost of work-in-process ending inventory = Total cost incurred * (1 - percentage of completion). Therefore, the cost of cases shipped is $374,418 - ($374,418 * 0.55) = $168,488.10.

The amount in work-in-process ending inventory is equal to: Total cost incurred * percentage of completion = $374,418 * 0.55 = $205,929.