Flynn and Morgan Refiners Began Business on July 1 All Production at Flynn and Morgan Is Sold as It

question 113

Essay

Flynn and Morgan Refiners began business on July 1. The following operations data are available for July and the one product the company produces:
$$\begin{array} { l r } & \text { Gallons } \\\text { Beginning inventory }& - 0- \\\text { Started in July } & 310,000 \\\text { Ending work-in-process inventory (80\% complete) } & 30,000 \\ \text { Cost incurred in July were: } & \\\text { Materials }& \$ 250,000 \\\text { Labor } & 52,000 \\\text { Manufacturing overhead } &154,000\end{array}$$

All production at Flynn and Morgan is sold as it is produced (i.e., there are no finished goods inventories).
Required:
(a) Compute cost of goods sold for July.
(b) What is the value of the work-in-process inventory on July 31?

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Definitions:

Reabsorption

The process in the kidneys where nutrients, water, and essential ions are reabsorbed into the bloodstream from filtered fluid.

Secretion

The process by which substances are produced and discharged from a cell or gland.

Urine Concentration

The process by which the kidneys regulate the electrolyte balance and water content in the body by adjusting the volume and concentration of urine.

Antidiuretic Hormone

A hormone also known as vasopressin that helps control the balance of water in the body by reducing the amount of water excreted in the urine.