PROBLEM 22: On December 24, 2021, a fire destroyed totally the raw materials bodega of Sana'a Manufacturing Company. There was no purchase of raw materials from the time of the fire until December 31, 2021: 1/1/2021 12/31/2021 90,000 6,000 185,000 220,000 Raw materials P Factory supplies Goods in process Finished goods 5,000 210,000 225,000 P The accounting records show the following data: P 1,200,000 400,000 30,000 Sales Purchases of raw materials Purchases of factory supplies Freight in on raw materials Direct labor 15,000 220,000 75% of direct labor 35% of sales Manufacturing overhead Gross profit rate 28. The cost of raw materials destroyed by fire was:

PROBLEM 22: On December 24, 2021, a fire destroyed totally the raw materials bodega of Sana'a Manufacturing Company. There was no purchase of raw materials from the time of the fire until December 31, 2021: 1/1/2021 12/31/2021 90,000 6,000 185,000 220,000 Raw materials P Factory supplies Goods in process Finished goods 5,000 210,000 225,000 P The accounting records show the following data: P 1,200,000 400,000 30,000 Sales Purchases of raw materials Purchases of factory supplies Freight in on raw materials Direct labor 15,000 220,000 75% of direct labor 35% of sales Manufacturing overhead Gross profit rate 28. The cost of raw materials destroyed by fire was:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

At year-end, Frenzy Company had a fire which completely destroyed the goods in process inventory. A physical 4. What amount should be reported as cost of goods in Problem 13-15 (AICPA Adapted) destroyed the goods in process inventory. A physical inventory was taken after the fire. January 1 December 31 6,000,000 4,300,000 1,700,000 500,000 4,500,000 Finished goods Goods in process Raw materi 2,000,000 400,000 Factory supplies During the year, the entity reported sales P20,000,000 purchases P3,800,000, freight P200,000, direct labor P5,000,000 and manufacturing overhead at 60% of direet labor. The average gross profit rate is 30% on sales. 1. What amount should be reported as cost of raw materials used? a. 5,700,000 b. 3,700,000 c. 3,800,000 d. 3,600,000 2: What amount should be reported as total manufacturing cost? а. 13,000,000 b. 11,800,000 c. 11,700,000 d. 11,600,000 3. What amount should be reported as cost of goods sold? a. 12,000,000 b. 16,000,000 с. 13,000,000 d. 14,000,000…
destroyed the goods in process inventory. A physical Problem 13-13 (AICPA Adapted) At year-end, Frenzy Company had a fire which cormpletely inventory was taken after the fire. December 31 January 1 Finished goods Goods in process Raw materials Factory supplies 6,000,000 4,300,000 1,700,000 500,000 4,500,000 2,000,000 400,000 During the year, the entity reported sales P20,000,000, purchases P3,800,000, freight P200,000, direct labor P5,000,000 and manufacturing overhead at 60% of direct labor. The average gross profit rate is 30% on sales. 1. What is the cost of raw materials used? a. 5,700,000 b. 3,700,000 c. 3,800,000 d. 3,600,000 2. What is the total manufacturing cost? a. 13,000,000 b. 11,800,000 c. 11,700,000 d. 11,600,000 3. What is the cost of goods sold? a. 12,000,000 b. 16,000,000 c. 13,000,000 d. 14,000,000 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. 1,500,000 375
PROBLEM 20: The work in process inventory of San Marino Company were completely destroyed by fire on June 1, 2021. You were able to establish physical inventory figures as follows: 1/1/2021 6/1/2021 Raw materials P 60,000 P 120,000 Work in process 200,000 – Finished goods 280,000. 240,000 Sales from January 1 to May 31 were P546,750. Purchases of raw materials were P200,000 and freight on purchases, P30,000. Direct labor during the period was P160,000. It was agreed with insurance adjusters that an average gross profit rate of 35% based on cost be used and that direct labor cost was 160% of factory overhead. 26. The work in process inventory destroyed by fire is:
PROBLEM 22: On December 24, 2021, a fire destroyed totally the raw materials bodegaof Sana’a Manufacturing Company. There was no purchase of raw materials fromthe time of thefire until December 31, 2021: 1/1/2021 12/31/2021 Raw materials P 90,000 ? Factory supplies 6,000 P 5,000 Goods in process 185,000 210,000 Finished goods 220,000 225,000 The accounting records show the following data: Sales P 1,200,000 Purchases of raw materials 400,000 Purchases of factory supplies 30,000 Freight in on raw materials 15,000 Direct labor 220,000 Manufacturing overhead 75% of direct labor Gross profit rate 35% of sales The cost of raw materials destroyed by fire was:
Items 18 to 20 At year-end, Erich Company had a fire which destroyed the goods in process inventory. A physical inventory was taken after the fire. The raw materials were valued at P600,000, the finished goods at P1,000,000 and factory supplies at P100,000 at year-end. The beginning inventories consisted of the following: 1,400,000 1,000,000 300,000 400,000 Finished goods Goods in process Raw materials Factory supplies 3 |Page INTERMEDIATE ACCOUNTING 1 Data for the current year Sales 3,000,000 Purchases 1,000,000 Freight-in 100,000 Direct labor 800,000 Manufacturing overhead - 50% of direct labor ? Average gross profit on sales 30% 18. What is the cost of goods sold? 19. What is the cost of goods manufactured? 20. What is the estimated cost of the ending goods in process that were completely destroyed by fire?
At year-end, Frenzy Company had a fire which completely Problem 13-13 (AICPA Adapted) - destroyed the goods in process inventory. A physical destroyed the goods in process inventory. A physical inventory was taken after the fire. December 31 January 1 Finished goods Goods in process Raw materials Factory supplies 6,000,000 4,300,000 1,700,000 500,000 During the year, the entity reported sales P20,000,000, purchases P3,800,000, freight P200,000, direct labor P5,000,000 and manufacturing overhead at 60% of direct 4,500,000 2,000,000 400,000 labor. The average gross profit rate is 30% on sales.
X Corp's total cost at various activity level for 2012 are presented below: Month Units |Cost March 250.00 350.00 April May June 3,800.00 4,400.00 4,100.00 5,300.00 300.00 500.00 The costs above consist of supplies cost, labor cost and utilities. The breakdown of these costs in April 2012 are as follows: Supplies cost (fixed cost) of P 2,000; labor cost (variable cost) of P 700 and utilities (mixed cost) of P 1,700. What would be the total cost if there will be 700 units sold for year 2013?
The work-in process inventory of Martinez Manufacturing was completely destroyed by fire on May 1, 2019. The physical inventory count as of that date is presented below: January 1 May 1 Raw Materials P 40,000 P 60,000 Work in Process 101,500 - Finished Goods 140,000 125,000 Sales from January 1 to April 30 were P300,000. Purchases of raw materials were P100,000 and freight on purchases, P10,000. Direct labor during the period was P80,000. It was agreed with the insurance adjusters that an average gross profit rate of 35% be used and…
The work-in process inventory of Martinez Manufacturing was completely destroyed by fire on May 1, 2019. The physical inventory count as of that date is presented below: January 1 May 1 Raw Materials P 40,000 P 60,000 Work in Process 101,500 - Finished Goods 140,000 125,000 Sales from January 1 to April 30 were P300,000. Purchases of raw materials were P100,000 and freight on purchases, P10,000. Direct labor during the period was P80,000. It was agreed with the insurance adjusters that an average gross profit rate of 35% be used and…
A fire destroyed the plant and all its contents of FIREFLY Company's manufacturing facility. Fortunately, certain accounting records were kept in another building and revealed the following from January 1 to February 28, 2021: Direct materials purchased Work in process, Jan 1 Direct materials, Jan 1 Finished goods, Jan 1 Indirect manufacturing costs P160,000 34,000 16,000 30,000 60% of conversion costs Sales Revenue Direct manufacturing labor Prime costs Gross margin Cost of goods available for sale P500,000 180,000 294,000 20% 450,000 What is the balance of Direct materials on 02/28/21 before it was damaged by fire? Enter your answer +D F3 C F5 F4 F6 F8 F9 F10 F11 24 & 8. 9 R Y. P. CO
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.
15. The work in process inventories of Jungkook Manufacturing, Inc. were completely destroyed by fire on June 1, 2021. Amounts for the following accounts have been established.· Accounts payable, Jan. 1, 2021- P117,000· Accounts payable, Jun. 1, 2021- P135,000· Raw materials, Jan. 1, 2021- P15,000 · Raw materials, Jun. 1, 2021- P18,000· Work in process, Jan. 1, 2021- P60,000 · Finished goods, Jan. 1, 2021- P69,000 · Finished goods, Jun. 1, 2021- P87,000 The following additional information was determined: · Payments to suppliers for purchases on account, P60,000. · Freight on purchases, P3,000. · Purchase returns, P7,500. · Direct labor, P48,000. · Production overhead, P18,000. · Sales from January 1 to May 31, P225,000. · Sales returns, P45,000. · Sales discounts, P15,000. · Gross profit rate based…