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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 P500,000 180,000 Sales Revenue Direct manufacturing labor Prime costs 294.000

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 P500,000 180,000 Sales Revenue Direct manufacturing labor Prime costs 294.000

FINANCIAL ACCOUNTING
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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What is the balance of direct materials on 02/28/21 before it was damaged by fire?

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 P500,000 180,000 294,000 20% 450,000 Sales Revenue Direct manufacturing labor Prime costs Gross margin Cost of goods available for sale What is the balance of Direct materials on 02/28/21 before it was damaged by fire?
Transcribed Image Text: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 P500,000 180,000 294,000 20% 450,000 Sales Revenue Direct manufacturing labor Prime costs Gross margin Cost of goods available for sale What is the balance of Direct materials on 02/28/21 before it was damaged by fire?
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