Calculate the normal cost of the work in process inventory lost during the fire. Cost of the work in process inventory $
Calculate the normal cost of the work in process inventory lost during the fire. Cost of the work in process inventory $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: accounting
Transcribed Image Text:Current Attempt in Progress
On November 30, 2022, there was a fire in the factory of Cullumber Manufacturing Limited, where you work as the controller. The
work in process inventory was completely destroyed, but both the materials and finished goods inventories were undamaged.
Cullumber uses normal job-order costing and its fiscal year end is December 31. Selected information for the periods ended October
31, 2022, and November 30, 2022, follows:
Supplies (including both direct and indirect materials)
Work in process inventory
Finished goods inventory
Cost of goods sold (year to date)
Accounts payable (relates to materials purchased only)
Manufacturing overhead incurred (year to date)
Manufacturing overhead applied
October 31,
2022
$79,850
58,975
59,100
567,000
17,960
129,900
128,900
November 30,
2022
$73,400
?
63,600
665,600
53,620
165,800
Transcribed Image Text:Other information for November 2022:
Cash payments to suppliers
Payroll (including $15,870 indirect)
Indirect materials used
Over-applied overhead (during November only)
$59,100
83,600
Cost of the work in process inventory $
5,890
2,760
Calculate the normal cost of the work in process inventory lost during the fire.
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