2. On November 1, a fire destroyed the work in process inventories of Kenshin Inc. After the fire a physical inventory was taken. January 1 P600,000 November 1 Direct raw materials P400,000 Factory supplies Work in process Finished goods 80,000 50,000 ??? 300,000 500,000 900,000 For the 10 months ended October 31, Kenshin reported the following: P10,000,000 Direct labor (DL) 40,000 Manufacturing overhead 80,000 Gross profit rate Sales 4,000,000 Accounts payable, Jan. 1 Accounts payable, Oct. 31 40% of DL 35% Pavment for purchases 500 .000
2. On November 1, a fire destroyed the work in process inventories of Kenshin Inc. After the fire a physical inventory was taken. January 1 P600,000 November 1 Direct raw materials P400,000 Factory supplies Work in process Finished goods 80,000 50,000 ??? 300,000 500,000 900,000 For the 10 months ended October 31, Kenshin reported the following: P10,000,000 Direct labor (DL) 40,000 Manufacturing overhead 80,000 Gross profit rate Sales 4,000,000 Accounts payable, Jan. 1 Accounts payable, Oct. 31 40% of DL 35% Pavment for purchases 500 .000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 14E: For each of the following independent situations, calculate the missing values: 1. The Belen plant...
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Question:
1. The amount of work in process inventory that was destroyed by fire amounted to
a. P510,000
b. P140,000
c. P460,000
d. P540,000
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