Mason Industries restarted operations on September 1 after a 3-month shutdown. There were no beginning inventories. The following operations data are available for September and the one product the company refines:
$$\begin{array} { l r }
& \text { Gallons } \
\text { Beginning inventory }& - 0- \
\text { Started in September } & 450,000 \
\text { Ending work-in-process inventory (70\% complete) } & 15,000 \
\text { Cost incurred in July were: } & \
\text { Materials }& \$ 560,000 \
\text { Labor } &164,300 \
\text { Manufacturing overhead } &242,350
\end{array}$$

All production at Mason is sold immediately.
Required:
(a) Compute cost of goods sold for September.
(b) What is the value of the work-in-process inventory on September 30?

Question

Mason Industries restarted operations on September 1 after a 3-month shutdown. There were no beginning inventories. The following operations data are available for September and the one product the company refines:
 $$\begin{array} { l r } 
 & \text { Gallons } \
\text { Beginning inventory }& - 0- \
\text { Started in September } & 450,000 \
\text { Ending work-in-process inventory (70\% complete) } & 15,000 \
 \text { Cost incurred in July were: } & \
\text { Materials }& \$ 560,000 \
\text { Labor } &164,300 \
\text { Manufacturing overhead } &242,350
\end{array}$$

All production at Mason is sold immediately.
Required:
(a) Compute cost of goods sold for September.
(b) What is the value of the work-in-process inventory on September 30?

Quizplus · Accepted Answer

The Answer of Mason Industries restarted operations on September 1 after a 3-month shutdown. There were no beginning inventories. The following operations data are available for September and the one product the company refines:
 $$\begin{array} { l r } 
 & \text { Gallons } \
\text { Beginning inventory }& - 0- \
\text { Started in September } & 450,000 \
\text { Ending work-in-process inventory (70\% complete) } & 15,000 \
 \text { Cost incurred in July were: } & \
\text { Materials }& \$ 560,000 \
\text { Labor } &164,300 \
\text { Manufacturing overhead } &242,350
\end{array}$$

All production at Mason is sold immediately.
Required:
(a) Compute cost of goods sold for September.
(b) What is the value of the work-in-process inventory on September 30?

Mason Industries Restarted Operations on September 1 After a 3-Month