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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.

    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:

    Determine the following:

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    Solution Summary

    The solution explains some questions relating to process costing