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At year-end, Frenzy Company had a fire which completely destroyed the goods in process inventory. A physical 4. What amount should be reported as cost of goods in Problem 13-15 (AICPA Adapted) destroyed the goods in process inventory. A physical inventory was taken after the fire. January 1 December 31 6,000,000 4,300,000 1,700,000 500,000 4,500,000 Finished goods Goods in pròcess Raw materials 2,000,000 400,000 Factory supplies 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 labor. The average gross profit rate is 30% on sales. 1. What amount should be reported as cost of raw materials used? a. 5,700,000 b. 3,700,000 c. 3,800,000 d. 3,600,000 2: What amount should be reported as total manufacturing cost? a. 13,000,000 b. 11,800,000 c. 11,700,000 d. 11,600,000 3. What amount should be reported as cost of goods sold: a. 12,000,000 b. 16,000,000 c. 13,000,000 d. 14,000,000 process inventory destroyed by fire? а. 3,500,000 b. 3,800,000 c. 2,500,000 d. 1,500,000

At year-end, Frenzy Company had a fire which completely destroyed the goods in process inventory. A physical 4. What amount should be reported as cost of goods in Problem 13-15 (AICPA Adapted) destroyed the goods in process inventory. A physical inventory was taken after the fire. January 1 December 31 6,000,000 4,300,000 1,700,000 500,000 4,500,000 Finished goods Goods in pròcess Raw materials 2,000,000 400,000 Factory supplies 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 labor. The average gross profit rate is 30% on sales. 1. What amount should be reported as cost of raw materials used? a. 5,700,000 b. 3,700,000 c. 3,800,000 d. 3,600,000 2: What amount should be reported as total manufacturing cost? a. 13,000,000 b. 11,800,000 c. 11,700,000 d. 11,600,000 3. What amount should be reported as cost of goods sold: a. 12,000,000 b. 16,000,000 c. 13,000,000 d. 14,000,000 process inventory destroyed by fire? а. 3,500,000 b. 3,800,000 c. 2,500,000 d. 1,500,000

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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At year-end, Frenzy Company had a fire which completely destroyed the goods in process inventory. A physical 4. What amount should be reported as cost of goods in Problem 13-15 (AICPA Adapted) destroyed the goods in process inventory. A physical inventory was taken after the fire. January 1 December 31 6,000,000 4,300,000 1,700,000 500,000 4,500,000 Finished goods Goods in process Raw materi 2,000,000 400,000 Factory supplies 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 direet labor. The average gross profit rate is 30% on sales. 1. What amount should be reported as cost of raw materials used? a. 5,700,000 b. 3,700,000 c. 3,800,000 d. 3,600,000 2: What amount should be reported as total manufacturing cost? а. 13,000,000 b. 11,800,000 c. 11,700,000 d. 11,600,000 3. What amount should be reported as cost of goods sold? a. 12,000,000 b. 16,000,000 с. 13,000,000 d. 14,000,000 process inventory destroyed by fire? a. 3,500,000 b. 3,800,000 c. 2,500,000 d. 1,500,000
Transcribed Image Text:At year-end, Frenzy Company had a fire which completely destroyed the goods in process inventory. A physical 4. What amount should be reported as cost of goods in Problem 13-15 (AICPA Adapted) destroyed the goods in process inventory. A physical inventory was taken after the fire. January 1 December 31 6,000,000 4,300,000 1,700,000 500,000 4,500,000 Finished goods Goods in process Raw materi 2,000,000 400,000 Factory supplies 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 direet labor. The average gross profit rate is 30% on sales. 1. What amount should be reported as cost of raw materials used? a. 5,700,000 b. 3,700,000 c. 3,800,000 d. 3,600,000 2: What amount should be reported as total manufacturing cost? а. 13,000,000 b. 11,800,000 c. 11,700,000 d. 11,600,000 3. What amount should be reported as cost of goods sold? a. 12,000,000 b. 16,000,000 с. 13,000,000 d. 14,000,000 process inventory destroyed by fire? a. 3,500,000 b. 3,800,000 c. 2,500,000 d. 1,500,000
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