A. What is the cost of goods manufactured?a. 2,500,000b. 1,700,000c. 3,100,000d. 2,300,000B. What is the estimated cost of the goods in process on December 31,2014 that were completely destroyed by fire?a. 1,300,000b. 2,100,000c. 2,000,000d. 1,700,000 On December 31, 2014, Haliparrot Company had a fire which completely destroyed thegoods in process inventory. After the fire, a physical inventory was taken. The rawmaterials were valued at P600,000, the finished goods at P1,000,000 and supplies atP100,000 on December 31, 2014. The inventories on January 1, 2014 consisted of thefollowing.1,400,0001,000,000300,000400,000Finished GoodsGoods in processRaw materialsSuppliesDate for the current year3,000,0001,000,000100,000SalesPurchasesFreight inDirect Labor800,000Manufacturing overhead - 50% of direct laborAverage gross profit rate30%

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A. What is the cost of goods manufactured? a. 2,500,000 b. 1,700,000 c. 3,100,000 d. 2,300,000

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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On February 20, 2013, a flood completely destroyed the goods in process inventory and half the raw materialsinventory of the Climb Company. There was no damage to the finished goods inventory. A physical inventory takenafter the flood indicated the following values:Raw materialsP35,000Finished goodsP 75,000A review of the accounting records indicated the following:Inventories, December 31, 2013Raw materialsP 65,000Raw materials purchasesP 20,000Goods in process80,000Direct labor cost30,000Finished goods72,000Manufacturing overhead cost15,000Sales (to February 20)40,000Gross profit rate (on sales)40%The value of the inventory destroyed by flood isA.113,000B.148,000C.156,000D.183,000
On June 30, 2016, a flash flood damaged the warehouse and factory of Padway Corporation, completely destroying the work-in-process inventory. There was no damage to either the raw materials or finished goods inventories. A physical inventory taken after the flood revealed the following valuations: Raw materials $ 62,000 Work in process 0 Finished goods 119,000 The inventory on January 1, 2016 consisted of the following: Raw materials $ 30,000 Work in process 100,000 Finished goods 140,000 $270,000 A review of the books and records disclosed that the gross profit margin historically approximated 25% of sales. The sales for the first six months of 2016 were $340,000. Raw material purchases were $115,000. Direct labor costs for this period were $80,000, and manufacturing overhead was historically applied at 50% of direct labor.
On June 30, 2019, a flash flood damaged the warehouse and factory of Padway Corporation, completely destroying the work-in-process inventory. There was no damage to either the raw materials or finished goods inventories. A physical inventory taken after the flood revealed the following valuations: Raw materials $ 62,000 Work in process 0 Finished goods 119,000 The inventory on January 1, 2019, consisted of the following: Raw materials $ 30,000 Work in process 100,000 Finished goods 140,000 $270,000 A review of the books and records disclosed that the gross profit margin historically approximated 25% of sales. The sales for the first six months of 2019 were $340,000. Raw material purchases were $115,000. Direct labor costs for this period were $80,000, and manufacturing overhead was historically applied at 50% of direct labor. Required: Compute the value of the work-in-process inventory lost at June 30, 2019.
On September 30, 2019, a flash flood damaged the warehouse and factory Of Waltermart, Inc. completely destroying its work in process inventory. There was no damage to either raw materials or finished goods since these were stored in an elevated section of the warehouse. A physical inventory taken immediately after the flood subsided showed the following: Raw materials — P740,000; Finished goods — P1,310,00. Inventories at January 1, 2019 consisted of the following: Raw Materials — P400,000; Work in Process — P1,100,000; Finished Goods - P1,500,000. The company's profit margin for the last several years is 25%. Sales for the first nine months of 2019 were P4,000,000. Raw materials purchases were P1,280,000. Direct labor cost for the period amounted to P960,000. Manufacturing overhead is applied at 50% of direct labor cost. What is the value of the work in process lost from flood at September 30, 2019? a. P580,000 b. P640,000 c. P670,000 d. P720,000 WITH EXPLANATION PLS!
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Conrad, Inc. recently lost a portion of its records in an office fire. The following information was salvaged from the accounting records. Cost of Goods Sold $ 65,000 Work-in-Process Inventory, Beginning 10,500 Work-in-Process Inventory, Ending 9,000 Selling and Administrative Expense 15,000 Finished Goods Inventory, Ending 15,000 Finished Goods Inventory, Beginning ? Direct Materials Used ? Factory Overhead Applied 12,000 Operating Income 14,000 Direct Materials Inventory, Beginning 11,000 Direct Materials Inventory, Ending 6,000 Cost of Goods Manufactured 60,000 Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The CFO of Conrad, Inc. has asked you to recalculate the following accounts and to report to him by the end of the day. What is the amount of total manufacturing cost?
On September 30, 20x1, the warehouse of A Company for inventory in progress and all inventories contained therein were razed by fire. Amounts for the following accounts have been established:Jan 01- Accounts payable 125,000.00- Raw materials 23,000.00- Work in process 63,000.00- Finished goods 55,500.00September 30- Accounts payable 146,500.00- Raw materials 28,000.00- Work in process ?- Finished goods 61,000.00The following additional information was determined:- Payments for purchases on account - 100,000.00- Freight on purchases - 12,000.00- Purchase returns 15,000.00- Direct labor 42,000.00- Manufacturing overhead 21,000.00- Sales from January to June 29 290,000.00- Sales returns 15,000.00- Sales discounts 29,000.00- Gross profit rate based on sales 40%Work in Process at September 20x1 is
On September 30, 20x1, the warehouse of A Company for inventory in progress and all inventories contained therein were razed by fire. Amounts for the following accounts have been established:Jan 01- Accounts payable 125,000.00- Raw materials 23,000.00- Work in process 63,000.00- Finished goods 55,500.00September 30- Accounts payable 146,500.00- Raw materials 28,000.00- Work in process ?- Finished goods 61,000.00The following additional information was determined:- Payments for purchases on account - 100,000.00- Freight on purchases - 12,000.00- Purchase returns 15,000.00- Direct labor 42,000.00- Manufacturing overhead 21,000.00- Sales from January to June 29 290,000.00- Sales returns 15,000.00- Sales discounts 29,000.00- Gross profit rate based on sales 40%Cost of goods manufactured is
On September 30, 20x1, the warehouse of A Company for inventory in progress and all inventories contained therein were razed by fire. Amounts for the following accounts have been established:Jan 01- Accounts payable 125,000.00- Raw materials 23,000.00- Work in process 63,000.00- Finished goods 55,500.00September 30- Accounts payable 146,500.00- Raw materials 28,000.00- Work in process ?- Finished goods 61,000.00The following additional information was determined:- Payments for purchases on account - 100,000.00- Freight on purchases - 12,000.00- Purchase returns 15,000.00- Direct labor 42,000.00- Manufacturing overhead 21,000.00- Sales from January to June 29 290,000.00- Sales returns 15,000.00- Sales discounts 29,000.00- Gross profit rate based on sales 40%Determine the loss on fire assuming P4,000 worth of scrap are recovered but realized for P3,000.
The Sahara Company's inventory was partially destroyed on June 4, 2016, when its warehouse caught on fire early in the morning. Inventory that had a cost of $8,000 was saved. The accounting records, which were located in a fireproof vault, contained the following information: Sales (1/1/16 through 6/3/16) $260,000 Purchases (1/1/16 through 6/3/16) 190,000 Inventory (1/1/16) 40,000 Gross profit ratio 30% of cost Using the gross profit method, what is the estimated cost of the inventory destroyed by the fire?
On May 31, 2019, a fire completely destroyed the work-in-process inventory of Adler Paints. Physical inventory figures were published as follows: As of January 1, 2019 As of May 31, 2019 Raw Materials P15,000 P 30,000 Work-in-process P50,000 - Finished Goods P70,000 P 60,000 Sales for the first five months of 2019 were P150,000. Raw materials purchased were P50,000. Freight on purchased were P50,000. Freight on purchases was P5,000. Direct labor for the five months was P40,000. To determine the value of the lost inventory, the insurance adjusters have agreed to use an average gross profit rate of 32.5%. Assume that manufacturing overhead was 45% of direct labor cost. A. Compute the value of the goods manufactured and completed as of May 31, 2019. B. Compute the raw materials used during the first five months of 2019. C. Compute the total value of goods put in process during the five-month period. D. Compute the value of the destroyed…
On April 12, after the close of business, Singh & Sons had a devastating fire that destroyedthe company’s work-in-process and finished-goods inventories. Fortunately, all rawmaterials escaped damage because materials owned by the firm were stored in anotherwarehouse. The following information is available:Sales revenue through April 12........................................................................ $330,000Income before taxes through April 12 ............................................................. 68,000Direct labor through April 12........................................................................... 120,000Cost of goods available for sale, April 12........................................................ 275,000Work-in-process inventory, January 1 ............................................................. 21,000Finished-goods inventory, January 1 ............................................................... 37,000Gross margin…