At year-end, Frenzy Company had a fire which completely 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.

At year-end, Frenzy Company had a fire which completely 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.

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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