Luke’s lubricants starts business on january 1. the following operations data are available for january for the one lubricant it produces. beginning inventory : 0 gallons started in january 165,000 gallons ending work-in-process inventory (80% complete) 17,000 gallons costs incurred in january follow : materials $ 221,200 labor 22,000 manufacturing overhead 80,000 all production at luke’s is sold as it is produced (there are no finished goods inventories). required: a. compute cost of goods sold for january. (do not round intermediate calculations.) b. what is the value of work-in-process inventory on january 31? (do not round intermediate calculations.)

a. Compute cost of goods sold for January  

$296,000  

b. What is the value of work-in-process inventory on January 31?  

$ 27,200  

Explanation:

Total Cost   Unit Sold  

$221,200   $165,000   Materials  

$22,000  -$17,000   Labor  

$80,000   -                Manufacturing overhead  

$323,200   $148,000  

Equivalent completed units in ending work-in-process inventory      17.000 x 80%  =   $13,600  

Equivalent units produced   148.000 +  13.600  = 161.600  Units

Per equivalent unit    $323,200  / 161.600 =  $2,00  

Cost of Goods Sold    148.000 / 2,00 = $296,000  

Equivalent completed units in ending work-in-process inventory    

13.600 x  $2,00 = $27,200

Or it's possible to do it  

$323,200  -   $296,000 = $ 27.200