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

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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?
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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…
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Carla Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2020. Jim Alcide, controller for Carla, has gathered the following data concerning inventory. At May 31, 2020, the balance in Carla's Raw Materials Inventory account was $505,920, and Allowance to Reduce Inventory to NRV had a credit balance of $27,630. Alcide summarized the relevant inventory cost and market data at May 31, 2020, in the schedule below. Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Carla's May 31, 2020, financial statements for inventory under the LCNRV rule as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Aluminum siding Cedar shake siding Louvered glass doors Thermal…
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