Gross Profit Method: Estimation of Flood Loss On June 30, 2019, a flash flood damaged the warehouse and factory of Padway Corporation, completely destroying the work-in-process inventory. There was no damage to either the raw materials or finished goods inventories. A physical inventory taken after the flood revealed the following valuations: Raw materials Work in process Finished goods $67,000 0 117,000 The inventory on January 1, 2019, consisted of the following: Raw materials $30,000 Work in process 100,000 Finished goods 150,000 $280,000 I A review of the books and records disclosed that the gross profit margin historically approximated 25% of sales. The sales for the first six months of 2019 were $340,000. Raw material purchases were $115,000. Direct labor costs for this period were $60.000, and manufacturing overhead was historically applied at 50% of direct labor. Required: Compute the value of the work-in-process inventory lost at June 10, 2019.

Gross Profit Method: Estimation of Flood Loss On June 30, 2019, a flash flood damaged the warehouse and factory of Padway Corporation, completely destroying the work-in-process inventory. There was no damage to either the raw materials or finished goods inventories. A physical inventory taken after the flood revealed the following valuations: Raw materials Work in process Finished goods $67,000 0 117,000 The inventory on January 1, 2019, consisted of the following: Raw materials $30,000 Work in process 100,000 Finished goods 150,000 $280,000 I A review of the books and records disclosed that the gross profit margin historically approximated 25% of sales. The sales for the first six months of 2019 were $340,000. Raw material purchases were $115,000. Direct labor costs for this period were $60.000, and manufacturing overhead was historically applied at 50% of direct labor. Required: Compute the value of the work-in-process inventory lost at June 10, 2019.

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 1CP

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On September 30, 2019, a flash flood damaged the warehouse and factory Of Waltermart, Inc. completely destroying its work in process inventory. There was no damage to either raw materials or finished goods since these were stored in an elevated section of the warehouse. A physical inventory taken immediately after the flood subsided showed the following: Raw materials — P740,000; Finished goods — P1,310,00. Inventories at January 1, 2019 consisted of the following: Raw Materials — P400,000; Work in Process — P1,100,000; Finished Goods - P1,500,000. The company's profit margin for the last several years is 25%. Sales for the first nine months of 2019 were P4,000,000. Raw materials purchases were P1,280,000. Direct labor cost for the period amounted to P960,000. Manufacturing overhead is applied at 50% of direct labor cost. What is the value of the work in process lost from flood at September 30, 2019? a. P580,000 b. P640,000 c. P670,000 d. P720,000 WITH EXPLANATION PLS!
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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On December 31, 2019, 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 6,000,000 4,300,000 1,700,000 500,000 4,500,000 Finished goods Goods in process 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 is the cost of raw materials used? а. 5,700,000 b. 3,700,000 c. 3,800,000 d. 3,600,000 2. What is the total manufacturing cost? а. 13,000,000 b. 11,800,000 с. 11,700,000 d. 11,600,000
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cost of goods sold
On June 30, 2016, a flash flood damaged the warehouse and factory of Padway Corporation, completely destroying the work-in-process inventory. There was no damage to either the raw materials or finished goods inventories. A physical inventory taken after the flood revealed the following valuations: Raw materials $ 62,000 Work in process 0 Finished goods 119,000 The inventory on January 1, 2016 consisted of the following: Raw materials $ 30,000 Work in process 100,000 Finished goods 140,000 $270,000 A review of the books and records disclosed that the gross profit margin historically approximated 25% of sales. The sales for the first six months of 2016 were $340,000. Raw material purchases were $115,000. Direct labor costs for this period were $80,000, and manufacturing overhead was historically applied at 50% of direct labor.
1. How much is the cost of goods manufactured? 2.How much is the total manufacturing cost? 3. What is the cost of the raw materials destroyed by fire? Show the solution in good accounting form
Required: The work in process inventory destroyed by fire is: