TROBLEM 2. On June 30, 2006 a flash flood damaged the warchouse and factory of ABCCorporation completely destroying the work-in-progress inventory. There was no damage to either theraw materials or finished goods inventories. A physical verification taken after the flood revealed thefollowing valuations.Raw Materials.62,000Work-in-ProgressFinished Goods1,19,000The inventory on Jan. 1, 2006 consicted of the following :Raw MaterialsWork-in-Progress30,0001,00,0001,40,000Finished Goods2,70,00025% of sales. The sales for the first six months of 2006 were1,15,000. Direct labour costs for this period wereA review of the books and records disclosed that the gross profit margin historically approximated3,40,000. Raw material purchases80,000 and manufacturing overhead haswerehistoricálly been 50% of direct labour.Compute the cost of work-in-progress inventory lost at June 30, 2006 by preparing a statement ofcost and profit.

Answered: Image /qna-images/answer/17fe4cbf-cdd5-45aa-ad1c-72e498ce06bc.jpg

TROBLEM 2. On June 30, 2006 a flash flood damaged the warchouse and factory of ABC Corporation completely destroying the work-in-progress inventory. There was no damage to either the raw materials or finished goods inventories. A physical verification taken after the flood revealed the following valuations. Raw Materials .62,000 Work-in-Progress Finished Goods 1,19,000 The inventory on Jan. 1, 2006 consicted of the following : 30,000 1,00,000 1,40,000 Raw Materials Work-in-Progress Finished Goods 2,70,000 A review of the books and records disclosed that the gross profit margin historically approximated 3,40,000. Raw material purchases 80,000 and manufacturing overhead has 25% of sales. The sales for the first six months of 2006 were 1,15,000. Direct labour costs for this period were were historicálly been 50% of direct labour. Compute the cost of work-in-progress inventory lost at June 30, 2006 by preparing a statement of cost and profit.

TROBLEM 2. On June 30, 2006 a flash flood damaged the warchouse and factory of ABC Corporation completely destroying the work-in-progress inventory. There was no damage to either the raw materials or finished goods inventories. A physical verification taken after the flood revealed the following valuations. Raw Materials .62,000 Work-in-Progress Finished Goods 1,19,000 The inventory on Jan. 1, 2006 consicted of the following : 30,000 1,00,000 1,40,000 Raw Materials Work-in-Progress Finished Goods 2,70,000 A review of the books and records disclosed that the gross profit margin historically approximated 3,40,000. Raw material purchases 80,000 and manufacturing overhead has 25% of sales. The sales for the first six months of 2006 were 1,15,000. Direct labour costs for this period were were historicálly been 50% of direct labour. Compute the cost of work-in-progress inventory lost at June 30, 2006 by preparing a statement of cost and profit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Dog
! Required information [The following information applies to the questions displayed below.] Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1. Inventory Classification Raw material Work in process Finished goods January 1, 20x1 $ 50,000 120,000 170, 000 December 31, 20x1 $ 70,000 115,000 165,000 Durjng 20x1, the company purchased $250,000 of raw material and spent $400,000 on direct labor. Manufacturing overhead costs were as follows: Indirect material Indirect labor Depreciation on plant and equipment Utilities 24 12,000 26,000 100,000 26, 000 30,000 Other Sales revenue was $1,110,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The firm's tax rate is 40 percent. Required: 7. of 9 Next > < Prev 6.
Alexandria Aluminum Company, a manufacturer of recyclable soda Cans, had the following inventory balances at the beginning and end of 20x1. Inventory classification Raw material Work in process Finished goods Indirect material Indirect labor January 1,20x1 Utilities Other $ 65,000 120,000 160,000 December31,20x1 During 2005, the company purchased $ 250,000 of raw material and spent $400,000 on direct labor. Manufacturing overhead costs were as follow: $ 11,000 26,000 Depreciation on plant and equipment 100,000 70,000 115,000 165,000 23,000 30,000 Sales revenue was $ 1,109,000 for the year. Selling and administrative expenses For the year amounted to $ 110,000. The firm's tax rate is 40%. Required: Prepare a schedule of cost goods manufactured. Prepare a schedule of cost of goods sold. Prepare an income statement.
The financial records for the Harrison Manufacturing Company have been destroyed in a fire. The following information has been obtained from a separate set of books maintained by the cost accountant. The cost accountant now asks for your assistance in computing the missing amounts. Direct Materials Inventory 8,900 ? ? Beg. Bal. Purchases End. Bal. Work-in-Process Inventory 8,400 ? 19,800 14,400 8,900 Beg. Bal. Materials Labor Overhead End. Bal. Beg. Bal. 7,300 Cost of Goods Sold 66,000 Finished Goods Inventory ? Transferred in End. Bal. 40, 400 5,100 Transferred Out Transferred Out Transferred Out What is the value of the ending Work-in-Process inventory balance?
The work-in process inventory of Martinez Manufacturing was completely destroyed by fire on May 1, 2019. The physical inventory count as of that date is presented below: January 1 May 1 Raw Materials P 40,000 P 60,000 Work in Process 101,500 - Finished Goods 140,000 125,000 Sales from January 1 to April 30 were P300,000. Purchases of raw materials were P100,000 and freight on purchases, P10,000. Direct labor during the period was P80,000. It was agreed with the insurance adjusters that an average gross profit rate of 35% be used and…
A9 pl
(a) Given that 30% of the unexpected losses were because of pilferage, prepare the abnormal spoilage statement, clearly showing All Things Brass true loss associated with the Polishing Process.
Problem 7-54 (Algo) Finding Missing Data (LO 7-2, 3) A new computer virus (AcctBGone) destroyed most of the company records at BackupsRntUs. The computer experts at the company could recover only a few fragments of the company’s factory ledger for March as follows. Direct Materials Inventory BB (3/1) 90,400 Work-In-Process Inventory BB (3/1) 27,200 Finished Goods Inventory EB (3/31) 65,300 Cost of Goods Sold Manufacturing Overhead Control Accounts Payable 53,900 EB (3/31) Further investigation and reconstruction from other sources yielded the following additional information: The controller remembers clearly that actual manufacturing overhead costs are recorded at $18 per direct labor-hour. (The company assigns actual overhead to Work-in-Process Inventory.) The production superintendent’s cost sheets showed only one job in Work-in-Process…
On September 30, 20x1, the warehouse of A Company for inventory in progress and all inventories contained therein were razed by fire. Amounts for the following accounts have been established:Jan 01- Accounts payable 125,000.00- Raw materials 23,000.00- Work in process 63,000.00- Finished goods 55,500.00September 30- Accounts payable 146,500.00- Raw materials 28,000.00- Work in process ?- Finished goods 61,000.00The following additional information was determined:- Payments for purchases on account - 100,000.00- Freight on purchases - 12,000.00- Purchase returns 15,000.00- Direct labor 42,000.00- Manufacturing overhead 21,000.00- Sales from January to June 29 290,000.00- Sales returns 15,000.00- Sales discounts 29,000.00- Gross profit rate based on sales 40%Cost of goods manufactured is
On September 30, 20x1, the warehouse of A Company for inventory in progress and all inventories contained therein were razed by fire. Amounts for the following accounts have been established:Jan 01- Accounts payable 125,000.00- Raw materials 23,000.00- Work in process 63,000.00- Finished goods 55,500.00September 30- Accounts payable 146,500.00- Raw materials 28,000.00- Work in process ?- Finished goods 61,000.00The following additional information was determined:- Payments for purchases on account - 100,000.00- Freight on purchases - 12,000.00- Purchase returns 15,000.00- Direct labor 42,000.00- Manufacturing overhead 21,000.00- Sales from January to June 29 290,000.00- Sales returns 15,000.00- Sales discounts 29,000.00- Gross profit rate based on sales 40%Work in Process at September 20x1 is
Problem 7-61 (Static) Reconstruct Missing Data (LO 7-2, 3) A tornado struck the only manufacturing plant of Toledo Farm Implements (TFI) on June 1. All work-in-process inventory was destroyed, but a few records were salvaged from the wreckage and from the company's headquarters. If acceptable documentation is provided, the loss will be covered by insurance. The insurable value of work-in-process inventory consists of direct materials, direct labor, and applied overhead. The following information about the plant appears on the April financial statements at the company's downtown headquarters: Materials inventory, April 30 $ 98,000 Work-in-process inventory, April 30 172,400 Finished goods inventory, April 30 64,000 Cost of goods sold through April 30 697,200 Accounts payable (materials suppliers), April 30 43,200 Manufacturing overhead through April 30 369,800 Payroll payable, April 30 0 Withholding and other payroll liabilities,…
The following information is taken from the accounting records of four different companies. Provide the missing amounts. Assume there are no indirect materials used in the company's finished product. Direct Materials Inventory, beginning Purchases of direct materials Company 1 Company 2 $15,000 $ 92,200 Company 3 $5,000 50,600 Company 4 $130,500 221,800 Total direct materials available for use 391,000 101,300 Direct Materials Inventory, ending 25,000 34,600 Direct materials used in production 71,200 Direct labor 212,000 25,000 324,400 Total manufacturing overhead 254,400 97,500 64,300 Total manufacturing cost Work in Process Inventory, Beginning 194,000 138,300 913,200 148,500 38,000 Work in Process Inventory, Ending 50,000 43,700 47,500 Cost of goods manufactured 814,400 103,450 920,300 Finished Goods Inventory, beginning 35,000 36,000 Cost of goods available for sale 393,000 140,050 Finished Goods Inventory, ending Cost of Goods Sold $796,400 $ 12,600 $109,400 $ 42,300