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    Greenwich value of WIP inventory; Graceland process costing amounts

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    1. Greenwich Companycustom-produces specialty souvenir products. During 2009, the company completed the following transactions:
    (a) Purchased $10,000 of raw materials, paying cash.
    (b) Used direct materialsin production as follows:
    (c) Paid direct labor costs as follows:
    (d) Paid cash for various actual factory overhead costs, $20,000.
    (e) Applied factory overhead to production using a predetermined overhead rate of $1.50 per direct labor dollar.
    (f) Completed Job 1.
    (g) Job 1 was sold for $25,000 cash.
    (h) Paid $500 for selling and administrative expenses.
    (i) Any over-or-under applied manufacturing overhead is closed to cost of goods sold.

    Required:
    Compute the value of the WIP ending inventory.

    2. Graceland Company uses process costing. The following information was available for October:

    During October, 1,000 units were started, and costs incurred during the month were $18,500. Ending inventory was 50% complete. Based on the information given, (A) above would be what amount?

    Selected accounts from Madison Company are provided below:

    Required:
    Determine the following:

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    https://brainmass.com/business/business-management/greenwich-value-of-wip-inventory-graceland-process-costing-amounts-356949

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    The solution explains some questions relating to process costing

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