Please help On April 12, after the close of business, Singh & Sons had a devastating fire thatdestroyed the company's work-in-process and finished-goods inventories. Fortunately,all raw materials escaped damage because materials owned by the firm were stored inanother warehouse. The following information is available:Sales revenue through April 12Income before taxes through April 12Direct labor through April 12Cost of goods available for sale, April 12Work-in-process inventory, January 1Finished-goods inventory, January 1Gross margin$330,00068,000120,000275,00021,00037,00030% of salesThe firm's accountants determined that the cost of direct materials used normallyaverages 25 percent of prime costs (i.e., direct material + direct labor). In addition,manufacturing overhead is 50 percent of the firm's total production costs.Required:Singh & Sons is in the process of negotiating a settlement with its insurance company.Prepare an estimate of the cost of work-in-process and finished-goods inventories thatwere destroyed by the fire.Cost of finished-goods inventoryCost of work-in-process inventory

Inventory: Inventory refers to the goods which are available for sale and raw materials which are…

1 April 12, after the close of business, Singh & Sons had a devastating fir stroyed the company's work-in-process and finished-goods inventories. raw materials escaped damage because materials owned by the firm w other warehouse. The following information is available: Sales revenue through April 12 Income before taxes through April 12 $330,000 68,000

1 April 12, after the close of business, Singh & Sons had a devastating fir stroyed the company's work-in-process and finished-goods inventories. raw materials escaped damage because materials owned by the firm w other warehouse. The following information is available: Sales revenue through April 12 Income before taxes through April 12 $330,000 68,000

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 14P: An examination of Buckhorn Fabricators records reveals the following transactions: a. On December...

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An examination of Buckhorn Fabricators records reveals the following transactions: a. On December 31, the physical inventory of raw material was 9,950 gallons. The book quantity, using the weighted average method, was 10,000 gal @ .52 per gal. b. Production returned to the storeroom materials that cost 775. c. Materials valued at 770 were charged to Factory Overhead (Repairs and Maintenance), but should have been charged to Work in Process. d. Defective material, purchased on account, was returned to the vendor. The material returned cost 234. e. Goods sold to a customer, on account, for 5,000 (cost 2,500) were returned because of a misunderstanding of the quantity ordered. The customer stated that the goods returned were in excess of the quantity needed. f. Materials requisitioned totaled 22,300, of which 2,100 represented supplies used. g. Materials purchased on account totaled 25,500. Freight on the materials purchased was 185. h. Direct materials returned to the storeroom amounted to 950. i. Scrap materials sent to the storeroom were valued at an estimated selling price of 685 and treated as a reduction in the cost of all jobs worked on during the period. j. Spoiled work sent to the storeroom valued at a sales price of 60 had production costs of 200 already charged to it. The cost of the spoilage is to be charged to the specific job worked on during the period. k. The scrap materials in (i) were sold for 685 cash. Required: Record the entries for each transaction.
On April 12, after the close of business, Singh & Sons had a devastating fire that destroyed the company's work-in-process and finished-goods inventories. Fortunately, all raw materials escaped damage because materials owned by the firm were stored in another warehouse. The following information is available: Sales revenue through April 12 Income before taxes through April 12 Direct labor through April 12 Cost of goods available for sale, April 12 Work-in-process inventory, January 11 Finished-goods inventory, January 1 Gross margin $330,000 68,000 120,000 275,000 21,000 37,000 Cost of finished-goods inventory Cost of work-in-process inventory 30% of sales The firm's accountants determined that the cost of direct materials used normally averages 25 percent of prime costs (.e., direct material + direct labor). In addition, manufacturing overhead is 50 percent of the firm's total production costs. Required: Singh & Sons is in the process of negotiating a settlement with its insurance…
On April 12, after the close of business, Singh & Sons had a devastating fire that destroyedthe company’s work-in-process and finished-goods inventories. Fortunately, all rawmaterials escaped damage because materials owned by the firm were stored in anotherwarehouse. The following information is available:Sales revenue through April 12........................................................................ $330,000Income before taxes through April 12 ............................................................. 68,000Direct labor through April 12........................................................................... 120,000Cost of goods available for sale, April 12........................................................ 275,000Work-in-process inventory, January 1 ............................................................. 21,000Finished-goods inventory, January 1 ............................................................... 37,000Gross margin…
Claire Corporation's trial balance includes the following expenses: Raw materials used in production Raw materials purchased General manager salary $5,500 6,500 50,000 30,000 130,000 General liability insurance premium 3,000 Factory rent 24,000 Office lease 18,000 Factory utilities 12,000 Depreciation on factory equipment 14,000 Assuming no change in the work in process and finished goods inventory balances for the year, what total amount should Claire report as a product expense? Sales manager salary Direct labor incurred Select one: a. $236,500 b. $185,500 c. $186,500 d. $171,500
Carla Vista Corporation incurred the following costs while manufacturing its product: Materials used in product Advertising expense Depreciation on plant Property taxes on plant Property taxes on warehouse Delivery expense Labour costs of assembly-line workers Sales commissions Factory supplies used Salaries paid to sales clerks (a) Your answer is incorrect. Calculate the cost of goods manufactured. $121,200 61,600 Cost of goods manufactured $ 7,710 Work in process inventory was $10,900 at January 1 and $14,800 at December 31. Finished goods inventory was $60,500 at January 1 and $50,800 at December 31. 111,000 26,000 $45,050 19.200 22,000 35,100 50,400
On September 25, a hurricane destroyed the work in process inventory of Biloxi Corporation. At that time, the company was in the process of manufacturing two custom jobs (B325 and Q428). Although all of Biloxi's on-site accounting records were destroyed, the following information is available from some backup off-site records. • Biloxi Corp. applies overhead at the rate of 85 percent of direct labor cost. • The cost of goods sold for the company averages 75 percent of selling price. Sales from January 1 to the date of the hurricane totaled $2,237,200. • The company's wage rate for production employees is $18.06 per hour. A total of 25,760 direct labor hours were recorded from January 1 through September 25. • As of September 25, $30,772 of direct material and 128 hours of direct labor had been recorded for Job B325. Also at that time, $20,580 of direct material and 240 hours of direct labor had been recorded for Job Q428. • January 1 inventories (of the current year) were as follows:…
Taylor Industries had a fire and some of its accounting records were destroyed. Available information is presented below for the year ended December 31. Materials inventory, December 31 $ 15,000 Direct materials purchased 28,000 Direct materials used 22,900 Cost of goods manufactured 135,000 Additional information: Factory overhead is 150% of direct labor cost. Finished goods inventory decreased by $18,000 during the year. Work in process inventory increased by $12,000 during the year. a. Calculate Materials inventory, January 1.$ b. Calculate direct labor cost.$ c. Calculate factory overhead incurred.$ d. Calculate cost of goods sold.$
On January 31, a snowstorm damaged the office of a small business, and some of the accounting information stored in the computer’s memory was lost. The following information pertaining to January activities was retrieved from other sources: Direct materials purchased $24,840 Work in process—beginning inventory 2,760 Direct materials—beginning inventory 8,280 Direct materials—ending inventory 13,800 Finished goods—beginning inventory 16,560 Finished goods—ending inventory 3,450 Sales 82,800 Manufacturing overhead and direct labour incurred 30,360 Gross profit percentage based on net sales 40 %. Assume that $27,600 of direct materials was used in January and that the cost of goods available for sale in January amounted to $55,200. What did the ending work in process inventory amount to? Ending work in process inventory $e Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for…
A manufacturing company has the following balances at the end of its first year's operations: Sales OMR350,000; actual manufacturing overhead OMR140,000; manufacturing overhead applied OMR114,0003; unadjusted costs of goods sold OMR175,000. The costs of goods sold balance includes overhead applied of OMR51,300. Ending Work in process inventory includes overhead applied of OMR34,700. Ending finished goods inventory includes overhead applied of OMR28,000. These balances are not adjusted for the overapplied or underapplied factory overhead. The company closes year-end manufacturing overhead balances proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. How much is the gross profit for the year after disposing the year-end overhead balances? Select one: O a. OMR186,700 O b. OMR158,800 c. None of the answers given O d. OMR149,000 O e. OMR163,300
Conrad, Inc. recently lost a portion of its records in an office fire. The following information was salvaged from the accounting records. Cost of Goods Sold $ 65,000 Work-in-Process Inventory, Beginning 10,500 Work-in-Process Inventory, Ending 9,000 Selling and Administrative Expense 15,000 Finished Goods Inventory, Ending 15,000 Finished Goods Inventory, Beginning ? Direct Materials Used ? Factory Overhead Applied 12,000 Operating Income 14,000 Direct Materials Inventory, Beginning 11,000 Direct Materials Inventory, Ending 6,000 Cost of Goods Manufactured 60,000 Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The CFO of Conrad, Inc. has asked you to recalculate the following accounts and to report to him by the end of the day. What is the amount of direct materials purchased?
A manufacturing company has the following balances at the end of its first year's operations: Sales OMR350,000; actual manufacturing overhead OMR150,000; manufacturing overhead applied OMR114,000; unadjusted costs of goods sold OMR175,000. The costs of goods sold balance includes overhead applied of OMR51,300. Ending Work in process inventory includes overhead applied of OMR34,700. Ending finished goods inventory includes overhead applied of OMR28,000. These balances are not adjusted for the overapplied or underapplied factory overhead. The company closes year-end manufacturing overhead balances proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. How much is the gross profit for the year after disposing the year-end overhead balances? Select one: Oa. OMR158,800 b. OMR139,000 o OMR154,300 d. None of the answers given OMRI91,200
On June 30 a company finished job 110 with total costs of $119,000 and transferred the costs to finished goods inventory. On april 10 the company completed the sale of the goods to a customer for 135,000 on account. How would the journal entry be recorded to show the costs of goods sold?