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Question: Cedargrove Cider processes and bottles apple cider


Cedargrove Cider processes and bottles apple cider for sale through retail and big box grocery outlets. It had no work in process on May 31 in its only inventory account. The company started 19,100 cases during June. On June 30, work in process is 4,000 cases. The production supervisor estimates that the ending work-in-process inventory is 60 percent complete. Cost records at Cedargrove recorded June production costs of $93,750 in materials cost and $107,500 in conversion costs. All production is sold as it is produced.
Required
a. Compute cost of goods sold for June.
b. What is the value of work-in-process inventory on June 30?
c. The president tells the controller that the company has already met its income target for the quarter, which ends on June 30, but whether the target can be met next quarter is in doubt. The president asks the controller to change the production manager’s estimate about the ending work-in-process inventory to increase the probability the company can meet the next quarter’s income target.
1. To comply with the president’s request, would the controller raise or lower the estimated percentage complete from the 60 percent estimate of the production supervisor? Explain.
2. What should the controller do?


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