ACCOUTING PRIN SET LL INCLUSIVE
14th Edition
ISBN: 9781119815327
Author: Weygandt
Publisher: WILEY
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Chapter 19, Problem 1EYCT
To determine
Introduction: The current assets of a company include all those assets that can be converted into cash within a year. Inventory is a current asset for the company. The inventory includes the raw material, work-in-process, and finished goods inventory.
To calculate: The amount of cost in raw material, work-in-process, and finished goods inventory account.
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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
Work in process, December 31, 2017, P34,000
Direct materials, December 31, 2017, P16,000
Finished Goods, December 31, 2017, P30,000
Factory overhead, 40% of conversion cost
Direct Labor, P180,000
The insurance company wants to know the approximate cost of the inventories as a
basis for negotiating a settlement.
Compute for the following:
1. Direct Materials Inventory, 2/20/2018
2. Work in Process Inventory, 2/20/2018
3. Finished Goods Inventory, 2/20/2018
4. Total Manufacturing Cost
5.…
You are the cost accountant for Fashions, Inc. On July 31, 2002, a fire destroyed part of your company's office building factory. Inventories were totally destroyed, and many of the accountant records were damaged or destroyed by the fire. You have been given the responsibility for recovering enough cost data to file an insurance claim. You were able to recover the following.
Cost of goods available for sale for July amounted to $395,000, sales totaled $625,000, and gross profit sales was 40%. in addition, raw materials used in July amounted to 175,000. and raw materials purchased totaled $172,500. Direct labor cost for July was $125,000.
Based on past results, you know that manufacturing overhead is 60% of direct labor cost. You are able to retrieve a copy of the June Balance sheet, and it indicates that inventories of June 30 were as follows:
Work in process inventory, $11,000
Finished Goods inventory $18,000
Raw Materials $9,500
You must determine the amount of your…
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.
Chapter 19 Solutions
ACCOUTING PRIN SET LL INCLUSIVE
Ch. 19 - Prob. 1QCh. 19 - Prob. 2QCh. 19 - Prob. 3QCh. 19 - Prob. 4QCh. 19 - Prob. 5QCh. 19 - Prob. 6QCh. 19 - Prob. 7QCh. 19 - Prob. 8QCh. 19 - Prob. 9QCh. 19 - Prob. 10Q
Ch. 19 - 12. Identify the differences in the cost of goods...Ch. 19 - Prob. 12QCh. 19 - Prob. 13QCh. 19 - Prob. 14QCh. 19 - Prob. 15QCh. 19 - Prob. 16QCh. 19 - Prob. 17QCh. 19 - 19. Discuss whether the product costing techniques...Ch. 19 - Prob. 19QCh. 19 - Prob. 20QCh. 19 - Prob. 21QCh. 19 - Prob. 22QCh. 19 - Prob. 23QCh. 19 - Prob. 24QCh. 19 - Prob. 25QCh. 19 - Prob. 1BECh. 19 - Prob. 2BECh. 19 - Prob. 3BECh. 19 - Prob. 4BECh. 19 - Prob. 5BECh. 19 - Prob. 6BECh. 19 - Prob. 7BECh. 19 - Prob. 8BECh. 19 - Prob. 9BECh. 19 - Prob. 10BECh. 19 - Prob. 11BECh. 19 - Prob. 1DIECh. 19 - Prob. 2DIECh. 19 - Prob. 3DIECh. 19 - DO IT! 19-4 Match the descriptions that follow...Ch. 19 - Prob. 1ECh. 19 - E19-2 Presented below is a list of costs and...Ch. 19 - E19-3 Trak Corporation incurred the following...Ch. 19 - Prob. 4ECh. 19 - Prob. 5ECh. 19 - Prob. 6ECh. 19 - Prob. 7ECh. 19 - Prob. 8ECh. 19 - Prob. 9ECh. 19 - Prob. 10ECh. 19 - Prob. 12ECh. 19 - Prob. 13ECh. 19 - Prob. 14ECh. 19 - Prob. 15ECh. 19 - Prob. 16ECh. 19 - Prob. 17ECh. 19 - Prob. 18ECh. 19 - P19-1A Ohno Company specializes in manufacturing a...Ch. 19 - Prob. 2PSACh. 19 - Prob. 3PSACh. 19 - Prob. 4PSACh. 19 - Prob. 5PSACh. 19 - Prob. 1EYCTCh. 19 - Prob. 2EYCTCh. 19 - Prob. 3EYCTCh. 19 - Prob. 4EYCTCh. 19 - Prob. 5EYCTCh. 19 - Prob. 7EYCT
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