3. The work in process inventories of Jungkook Manufacturing, Inc. were completely destroyed by fire on June 1, 2021. Amounts for the following accounts have been established. · Accounts payable, Jan. 1, 2021- P117,000 · Accounts payable, Jun. 1, 2021- P135,000 · Raw materials, Jan. 1, 2021- P15,000 · Raw materials, Jun. 1, 2021- P18,000 · Work in process, Jan. 1, 2021- P60,000 · Finished goods, Jan. 1, 2021- P69,000 · Finished goods, Jun. 1, 2021- P87,000 The following additional information was determined: · Payments to suppliers for purchases on account, P60,000. · Freight on purchases, P3,000. · Purchase returns, P7,500. · Direct labor, P48,000. · Production overhead, P18,000. · Sales from January 1 to May 31, P225,000. · Sales returns, P45,000. · Sales discounts, P15,000. · Gross profit rate based on sales, 25%. How much is the work in process destroyed by fire? CHOICES: P49,500 P48,000 P58,500 P51,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

33. The work in process inventories of Jungkook Manufacturing, Inc. were completely destroyed by fire on June 1, 2021. Amounts for the following accounts have been established.

·       Accounts payable, Jan. 1, 2021- P117,000

·       Accounts payable, Jun. 1, 2021- P135,000

·       Raw materials, Jan. 1, 2021- P15,000

·       Raw materials, Jun. 1, 2021- P18,000

·       Work in process, Jan. 1, 2021- P60,000

·       Finished goods, Jan. 1, 2021- P69,000

·       Finished goods, Jun. 1, 2021- P87,000

The following additional information was determined:

·       Payments to suppliers for purchases on account, P60,000.

·       Freight on purchases, P3,000.

·       Purchase returns, P7,500.

·       Direct labor, P48,000.

·       Production overhead, P18,000.

·       Sales from January 1 to May 31, P225,000.

·       Sales returns, P45,000.

·       Sales discounts, P15,000.

·       Gross profit rate based on sales, 25%.

How much is the work in process destroyed by fire?

CHOICES:

P49,500

P48,000

P58,500

P51,000

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions