A fire destroyed some accounting records of a company. You have been able to collect the following from the spoilt papers/ records and as a result of consultation with accounting staff in respect of January, 2019. (1) Incomplete Ledger Entries : RAW-MATERIALS ACCOUNT $ Beginning Inventory 32000 WORK-IN-PROGRESS ACCOUNT 2$ | 1,51,000 Beginning Inventory 9200 Finished Stock CREDITORS A/c 2$ $4 Closing Balance 19200 Opening Balance 16400 MANUFACTURING OVERHEADS A/C $ Amount Spent 29600 FINISHED GOODS A/C Opening Inventory (ii) Additional information: |Closing Inventory 24000 30000 (1) The cash-book showed that 89,200 have been paid to creditors for raw-material. (2) Ending inventory of works-in-progress included material 35,000 on which 300 direct labour hours have been booked against wages and overheads. (3) The job card showed that workers have worked for 7,000 hours. The wage rate is 10 per labour hour. (4) Overhead recovery rate was 4 per direct labour hour. You are required to complete the above accounts in the Cost Ledger of the company. %24

A fire destroyed some accounting records of a company. You have been able to collect the following from the spoilt papers/ records and as a result of consultation with accounting staff in respect of January, 2019. (1) Incomplete Ledger Entries : RAW-MATERIALS ACCOUNT $ Beginning Inventory 32000 WORK-IN-PROGRESS ACCOUNT 2$ | 1,51,000 Beginning Inventory 9200 Finished Stock CREDITORS A/c 2$ $4 Closing Balance 19200 Opening Balance 16400 MANUFACTURING OVERHEADS A/C $ Amount Spent 29600 FINISHED GOODS A/C Opening Inventory (ii) Additional information: |Closing Inventory 24000 30000 (1) The cash-book showed that 89,200 have been paid to creditors for raw-material. (2) Ending inventory of works-in-progress included material 35,000 on which 300 direct labour hours have been booked against wages and overheads. (3) The job card showed that workers have worked for 7,000 hours. The wage rate is 10 per labour hour. (4) Overhead recovery rate was 4 per direct labour hour. You are required to complete the above accounts in the Cost Ledger of the company. %24

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

The financial records for the Harrison Manufacturing Company have been destroyed in a fire. The following information has been obtained from a separate set of books maintained by the cost accountant. The cost accountant now asks for your assistance in computing the missing amounts. Direct Materials Inventory 8,900 ? ? Beg. Bal. Purchases End. Bal. Work-in-Process Inventory 8,400 ? 19,800 14,400 8,900 Beg. Bal. Materials Labor Overhead End. Bal. Beg. Bal. 7,300 Cost of Goods Sold 66,000 Finished Goods Inventory ? Transferred in End. Bal. 40, 400 5,100 Transferred Out Transferred Out Transferred Out What is the value of the ending Work-in-Process inventory balance?
Please do not give solution in image format thanku
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…
A9 pl
Quick assistance please
What did i do wrong in my calculations? On November 21, 2021, a fire at Hodge Company’s warehouse caused severe damage to its entire inventory of Product Tex. Hodge estimates that all usable damaged goods can be sold for $18,000. The following information was available from the records of Hodge’s periodic inventory system: Inventory, November 1 $ 130,000 Net purchases from November 1, to the date of the fire 146,000 Net sales from November 1, to the date of the fire 226,000 Based on recent history, Hodge’s gross profit ratio on Product Tex is 30% of net sales. Required:Calculate the estimated loss on the inventory from the fire, using the gross profit method. $134,200
73. Meadows Company headquarters records all of its branch equipment in its own general ledger. Prepare the journal entries in the horne office books and in the branch books as a result of the following transactions: (a) At the beginning of 1986, the branch office purchased branch inventory for $2,500, terms of purchase 2/10, n/30. (b) Head office pays invoices within the discount period. (c) Depreciation on equipment is recorded at the end of the year at a rate of 10%. (d) In earty 1987, the branch's old inventory was exchanged for new inventory for $4,000; A trade-in of $1,500 is received on the old inventory and headquarters pays the balance.
dog subject-Accounting
Late on the night of August 30, 2021, an arsonist destroyed the FAITHFUL Inc's warehouse which was full of inventory. The accounting records were stored in another facility and not destroyed in the fire. The company is in the process of filing a claim with its insurance company for the inventory loss due to the fire. Beginning inventory P350,500 Purchases through August 30, 2021 470,250 Net sales revenue through August 30, 2021 745,200 The gross profit percent has historically been 40% of net sales revenue. Estimate the value of the inventory destroyed in the fire using the gross profit method.
Please do not give solution in image format thanku
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
Fire occurred at the factory of Burny Corporation on February 16, 2020 which damaged its merchandise inventory. You were given the following data: Inventory, January 1, 2010 P 400,000, Sales (including sales delivered still in transit FOB shipping point, P 50,000) P980,000, Purchases (including those still in transit, Shipped FOB shipping point P 40,000, Shipped FOB destination, P35,000) P700,000. The merchandise saved from fire was estimated to be P 8,500. Burny Corporation's policy is to add 40% on its cost. Compute for the estimated value of inventory damaged by fire. Present solutions in good accounting form.