On May 30, a manufacturing facility of a medium-sized company was severely damaged by an earthquake...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On May 30, a manufacturing facility of a medium-sized company was severely damaged by an earthquake followed by a fire. As a direct result, the company's direct materials, work-in-process and finished goods inventories were destroyed. Records recovered from the disaster revealed the following incomplete accounting information: 1. Beginning Inventories Direct Materials Work-in-Process Finished Goods 2. May results Net sales Direct materials purchased Direct labor cost 3. Key ratios for this plant: Gross Profit Prime costs Ending WIP Manufacturing Overhead $55,000 $90,000 $25,000 $1,275,000 $550,000 $400,000 20% of net sales 60% of total manufacturing costs 10% of total manufacturing costs 60% of conversion cost Required: Estimate the cost of the inventory lost (RM, WIP & FG) by reconstructing the Cost of Goods Manufactured and Sold report. On May 30, a manufacturing facility of a medium-sized company was severely damaged by an earthquake followed by a fire. As a direct result, the company's direct materials, work-in-process and finished goods inventories were destroyed. Records recovered from the disaster revealed the following incomplete accounting information: 1. Beginning Inventories Direct Materials Work-in-Process Finished Goods 2. May results Net sales Direct materials purchased Direct labor cost 3. Key ratios for this plant: Gross Profit Prime costs Ending WIP Manufacturing Overhead $55,000 $90,000 $25,000 $1,275,000 $550,000 $400,000 20% of net sales 60% of total manufacturing costs 10% of total manufacturing costs 60% of conversion cost Required: Estimate the cost of the inventory lost (RM, WIP & FG) by reconstructing the Cost of Goods Manufactured and Sold report.
Expert Answer:
Answer rating: 100% (QA)
To estimate the cost of the inventory lost raw materials workinprocess and finished goods we need to reconstruct the Cost of Goods Manufactured and So... View the full answer
Related Book For
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1118856994
4th Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
Posted Date:
Students also viewed these accounting questions
-
On January 31, 2016, the manufacturing facility of a medium-sized company was severely damaged by an accidental fire. As a result, the company's direct materials, work in process, and finished goods...
-
Inventory estimates, partial data: manufacturer On April 12, after the close of business. Goldstein & Sons had a devastating fire that destroyed the firm's work in process and finished goods...
-
The Cost Department of Columbus Company received the following monthly data, pertaining solely to manufacturing activities, from the general ledger clerk: Additional data: (a) Physical inventory...
-
Consider a situation with two firms that have marginal abatement cost functions The marginal damage function is again equal to D'(E)=d.E. Assume the regulator applies Monteros mechanism. Determine...
-
A pediatrician wants to determine the relation that may exist between a child's height and head circumference. She randomly selects eleven 3-yearold children from her practice, measures their heights...
-
The managing partner of a major consulting firm is trying to assess the effectiveness of expensive computer skills training given to all new entry-level professionals. In an effort to make such an...
-
You are required to prepare a sales ledger control account from the following for the month of May: 19X6 May 1 Sales ledger balances 4,936 Totals for May: Sales journal 49,916 Returns inwards journal...
-
Mike Greenberg opened Clean Window Washing Inc. on July 1, 2014. During July, the following transactions were completed. July 1 Issued 12,000 shares of common stock for $12,000 cash. 1 Purchased used...
-
Reconcile the cash journal and bank statement. What differences are there between the journal and the statement? Cash journal Cash at bank Date Cheque Details Debit Credit 14/1/XX 770981 P R Smith...
-
Joseph Randal has just been named the director of alumni relationships at a local university. Alumni donations are an important source of revenue for colleges and universities. If administrators...
-
The program below is to calculate the area of a rectangle. However, it produces error and/or incorrect results. 1) Explain where and why the program went wrong (use line numbers). 2) Fix the program...
-
Lily drove a total of 500 miles on g gallons of gas. Express her fuel economy measurement in miles per gallon as an algebraic expression. Do
-
Members of a softball team raised $1334.50 to go to a tournament. They rented a bus for $779.50 and budgeted $46.25 per player for meals. Determine the number of players the team can bring to the...
-
This assignment has two parts - in the first, you're attacking a system. In the second, you're defending. Your target is a TP-Link NC200 cloud camera. It's in my office, in my house, and you don't...
-
Colette needs to create a competency framework for her team. What is the best way for her to get started? Select an answer: Interview high-performing individuals. List the tasks her team does well....
-
1. Im creating a Pizza object. It has the following characteristics: - Topping1 (String) - Topping2 (String) - Topping3 (String) - Size (char) - Price (double) I am overloading the constructor for...
-
snazzy shoe company sold shoes to jones athletics on june 1 , 2 0 2 4 . snazzy accepted a 1 - year, non - interest bearing note for $ 5 , 0 0 0 in exchange for delivering shoes to jones that had a...
-
An environmentalist wants to determine if the median amount of potassium (mg/L) in rainwater in Lincoln County, Nebraska, is different from that in the rainwater in Clarendon County, South Carolina....
-
Look on the Internet for time management resources that are designed specifically for students. If you cannot find one, look at the University of Guelph library web page. (a) Why is it important to...
-
Scalar Manufacturing produces automobile parts in batches in one continuous manufacturing process. The company uses direct labour hours to assign overhead to each part. Magda Malakova, the financial...
-
Miramichi Industrial Products Co. is a diversified industrial-cleaner processing company. The company's main plant produces two products: a table cleaner and a floor cleaner. They are made from a...
-
You find short time lags between deposits and withdrawals and large deposits made on Fridays. What should you suspect?
-
What are some ways to steal cash? What can help to prevent cash and check thefts?
-
What are some audit steps to catch skimming and money-laundering schemes?
Study smarter with the SolutionInn App