The cost of the raw materials destroyed by the fire was ____________ On December 24, 2020, a fire totally destroyed the raw materials bodega of Make It Right Mfg. Co. ĮTherewas no purchase of raw materials from the time of the fire until December 31, 2020.InventoriesRaw materials01/01/20P 90,0006,000185,00012/31/20?P 5,000Factory suppliesGoods in processFinished goods210,000220,000225,000The accounting records show the following data:SalesP1,200,000Purchases of raw materials400,000Purchases of factory suppliesFreight-in, raw materialsDirect labor30,00015,000220,00075% of direct laborManufacturing overheadGross profit rateThe cost of the raw materials destroyed by the fire was35% of sales

Cost of goods sold is actual cost of goods being sold to the customers. Cost of goods manufactured…

Answered: he cost of the raw materials destroyed…

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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111
Cost of Normal Spoilage Frieling Company installs granite countertops in customers' homes. First, the customer chooses the particular granite slab, and then Frieling measures the countertop area at the customer's home, cuts the granite to that shape, and installs it. The Tramel job calls for direct materials of $2,100 and direct labor of $1,100. Overhead is applied at the rate of 110 percent of direct labor cost. Unfortunately, one small countertop breaks during installation and Frieling must cut another piece and install it to properly complete the job. The additional rework required direct materials costing $600 and direct labor costing $300. Assume that the spoilage was due to carelessness by a Frieling worker and it is considered to be normal spoilage. Required: 1. Calculate the cost of the Tramel job. $ 2. Make any needed journal entry to the overhead control account. If an amount box does not require an entry, leave it blank. 3. What if the additional rework required $600 of…
Spoilage and Scrap (Appendix) Lexan Textile Company’s Job X12 had one of its 20 unitsspoiled. The cost incurred on the unit was $600. It was specific normal spoilage with an estimateddisposal price of $300 for the spoiled unit. Job Y34 had common normal spoilage with the estimatedcost of $400 from the general production process failure and abnormal spoilage of $200. The company also incurred scrap due to Job Y34 and sold it for $80. It also sold the scrap common to all jobsfor $120 cash in May.Required1. Make the necessary journal entries to record normal and abnormal spoilage costs.2. Make the necessary journal entries to record both types of scrap sold.
Problem 7-61 (Static) Reconstruct Missing Data (LO 7-2, 3) A tornado struck the only manufacturing plant of Toledo Farm Implements (TFI) on June 1. All work-in-process inventory was destroyed, but a few records were salvaged from the wreckage and from the company's headquarters. If acceptable documentation is provided, the loss will be covered by insurance. The insurable value of work-in-process inventory consists of direct materials, direct labor, and applied overhead. The following information about the plant appears on the April financial statements at the company's downtown headquarters: Materials inventory, April 30 $ 98,000 Work-in-process inventory, April 30 172,400 Finished goods inventory, April 30 64,000 Cost of goods sold through April 30 697,200 Accounts payable (materials suppliers), April 30 43,200 Manufacturing overhead through April 30 369,800 Payroll payable, April 30 0 Withholding and other payroll liabilities,…

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