Please show solutions. Thank you! 4. What is the cost of goods in process inventory destroyedby fire?a. 3,500,000b. 3,800,000c. 2,500,000d. 1,500,000 On December 31, 2019, Frenzy Company had a fire whichcompletely destroyed the goods in process inventory. Aphysical inventory was taken after the fire.December 31January 1Finished goodsGoods in processRaw materials4,500,0006,000,0004,300,0001,700,000500,0002,000,000400,000Factory suppliesDuring the year, the entity reported sales P20,000,000,purchases P3,800,000, freight P200,000, direct laborP5,000,000 and manufacturing overhead at 60% of directlabor. The average gross profit rate is 30% on sales.

Here the option C is correct. Cost of good in process inventory destroyed by fire is 2500000.

Answered: 4. What is the cost of goods in process…

4. What is the cost of goods in process inventory destroyed by fire? a. 3,500,000 b. 3,800,000 c. 2,500,000 d. 1,500,000

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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