4-6 only Solve the given problem: (Show your complete solution)A mentally deranged employee, Mr. Arson, put a torch to a factory on February 20,2018. The resulting fire completely destroyed the plant and its contents. Fortunately,certain accounting records were kept in another building. They revealed the following forthe period December 31, 2017 to February 20, 2018:Prime cost, P301,000Gross Profit, P100,000 or 20% of salesCost of Goods Available for Sale, P460,000Direct Materials purchased, P170,000Work in process, December 31, 2017, P34,000Direct materials, December 31, 2017, P16,000Finished Goods, December 31, 2017, P30,000Factory overhead, 40% of conversion costDirect Labor, P180,000The insurance company wants to know the approximate cost of the inventories as abasis for negotiating a settlement.Compute for the following:1. Direct Materials Inventory, 2/20/20182. Work in Process Inventory, 2/20/20183. Finished Goods Inventory, 2/20/20184. Total Manufacturing Cost5. Indirect Materials6. Cost of Goods Placed in Process7. Cost of Goods Manufactured8. Cost of Goods Sold9. Sales

Cost Sheet: The copmonents of cost can be presented in the form of statement known as Cost Sheet.…

A mentally deranged employee, Mr. Arson, put a torch to a factory on February 20, 2018. The resulting fire completely destroyed the plant and its contents. Fortunately, certain accounting records were kept in another building. They revealed the following for the period December 31, 2017 to February 20, 2018: Prime cost, P301,000 Gross Profit, P100,000 or 20% of sales Cost of Goods Available for Sale, P460,000 Direct Materials purchased, P170,000

A mentally deranged employee, Mr. Arson, put a torch to a factory on February 20, 2018. The resulting fire completely destroyed the plant and its contents. Fortunately, certain accounting records were kept in another building. They revealed the following for the period December 31, 2017 to February 20, 2018: Prime cost, P301,000 Gross Profit, P100,000 or 20% of sales Cost of Goods Available for Sale, P460,000 Direct Materials purchased, P170,000

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

Problem 45P: The Goodson Company is a chain of retail electronics stores. How much of a loss can Goodson deduct...

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