The following information was taken from the accounting records of Tech Inc. for the financial year...

 

Transcribed Image Text:

The following information was taken from the accounting records of Tech Inc. for the financial year 2019. The number of units of widgets produced is 2000. R&D, marketing and customer service expenses Ending work-in-process inventory Indirect manufacturing labour Beginning finished goods inventory Machinery leasing cost Beginning direct material inventory Ending finished goods inventory Ending direct material inventory Beginning work-in-process inventory Purchase of direct material S70,000 $7,000 $7,000 $22,000 $3,000 $11,000 S18,000 $8,000 $6,000 $73,000 S1,000 $2,000 $9,000 $2,000 $5,000 $210,000 I Miscellaneous production overheads Depreciation on production plant Direct manufacturing labour Factory supplies used Factory utilities Sales revenue Required: 1. Using the above information, prepare a Statement of Cost of Goods Manufactured in proper form. What is the unit cost for valuing inventory for external reporting? 2. Prepare an income statement to determine the operating income 3. Most of the company's accounting records were destroyed in a warehouse fire on December 3lst, 2019. Mr. Smart, the CEO Tech Inc. did not want to give up on the business. "We need to fill out the insurance forms as soon as possible to get back all our lost inventories". Assume you are the accountant at Tech Inc. Estimate the amount recoverable in insurance proceeds tv The following information was taken from the accounting records of Tech Inc. for the financial year 2019. The number of units of widgets produced is 2000. R&D, marketing and customer service expenses Ending work-in-process inventory Indirect manufacturing labour Beginning finished goods inventory Machinery leasing cost Beginning direct material inventory Ending finished goods inventory Ending direct material inventory Beginning work-in-process inventory Purchase of direct material S70,000 $7,000 $7,000 $22,000 $3,000 $11,000 S18,000 $8,000 $6,000 $73,000 S1,000 $2,000 $9,000 $2,000 $5,000 $210,000 I Miscellaneous production overheads Depreciation on production plant Direct manufacturing labour Factory supplies used Factory utilities Sales revenue Required: 1. Using the above information, prepare a Statement of Cost of Goods Manufactured in proper form. What is the unit cost for valuing inventory for external reporting? 2. Prepare an income statement to determine the operating income 3. Most of the company's accounting records were destroyed in a warehouse fire on December 3lst, 2019. Mr. Smart, the CEO Tech Inc. did not want to give up on the business. "We need to fill out the insurance forms as soon as possible to get back all our lost inventories". Assume you are the accountant at Tech Inc. Estimate the amount recoverable in insurance proceeds tv

Answer rating: 100% (QA)

Statement of Cost of Goods Manufactured Income Statement Beginning Direct Material I... View the full answer