=&inprogress=false eBook Inventory Valuation You are engaged in an audit of Roche Mfg. Company for the year ended December 31, 2019. To reduce the workload at year-end, Roche took its annual physical inventory under your observation on November 30, 2019. Roche's inventory account, which includes raw materials and work in process, is on a perpetual basis, and it uses the first-in, first-out method of pricing. It has no finished goods inventory. The company's physical inventory revealed that the book inventory of $60,390 was understated by $2,380. To avoid distorting the interim financial statements, Roche decided not to adjust the book inventory until year-end except for obsolete inventory items. Your audit revealed this information about the November 30 inventory: Pricing tests showed that the physical inventory was overpriced by $2,770. Footing and extension errors resulted in a $160 understatement of the physical inventory. . Direct labor included in the physical inventory amounted to $11,850. Overhead was included at the rate of 200% of direct labor. You determined that the amount of direct labor was correct and the overhead rate was proper. . The physical inventory included obsolete materials recorded at $390. During December, these materials were removed from the inventory account by a charge to cost of sales. Your audit also disclosed the following information about the December 31, 2019, inventory. Total debits to certain accounts during December are: December Purchases $25,750 Direct labor 11,760 Manufacturing overhead expense 25,900 Cost of sales 71,400 The cost of sales of $71,400 included direct labor of $13,000. . Normal scrap loss on established product lines is negligible. However, a special order started and completed during December had excessive scrap loss of $810 which was charged to Manufacturing Overhead Expense. Required: 1. Compute the correct amount of the physical inventory at November 30, 2019. Inventory per books Physical inventory, per client Total Previous Check My Work Email Instructor Save and Exit Submit Assignment for Grading All work saved. 4:46 PM 11/12/2022https://V2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Chapter 7 Homework - Part 2 eBook 1. EX. 07.17 ALGO Total 2. PR.07.16.ALGO Corrected physical inventory at November 30, 2019 2. Without prejudice to your solution to Requirement 1, assume that the correct amount of the inventory at November 30, 2019, was $55,580. Compute the amount of the inventory at December 31, 2019. Corrected physical inventory at November 30 Inventory of materials at November 30 Total material available lotal Total Materials inventory at December 31 Progress: 2/2 items Check My Work Previous Assignment Score: 12.5% All work saved . Email Instructor Save and Exit Submit Assignment for Grading 4:46 PM ~ 60 6 7 7 4 0 11/12 /2022 Mostly cloudy delete CE prt sc home end insertInventory of materials at November 30 Total material available Total 100 Total 00 Materials inventory at December 31 Inventory at December 31, 2019 Previ Check My Work items All work saved. Email Instructor Save and Exit Submit Assignment fo re: 12.5% loudy DELL CE delete home end insert prt sc F12 F9 F10 F11 F6 F7 F8 DII x F5 F3 F4 num F2 backspace lock