Compute the cost of paint transferred to finished goods

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Problem - Sanchez & Company produces paints. On July 1, it had no work-in-process inventory. It starts production of 150,000 gallons of paint in July and completes 120,000 gallons. The costs of the resources used by Sanchez in July consist of the following:

Materials $137,000

Conversion costs (labor and overhead) 175,000

Required - The production supervisor estimates that the ending work-in-process is 16 percent complete. Compute the cost of paint transferred to finished goods and the amount in work-in-process ending inventory as of July 31.

Reference no: EM132672917

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