Items 18 to 20At year-end, Erich Company had a fire which destroyed the goods in process inventory. A physicalinventory was taken after the fire.The raw materials were valued at P600,000, the finished goods at P1,000,000 and factory supplies atP100,000 at year-end.The beginning inventories consisted of the following:1,400,0001,000,000300,000400,000Finished goodsGoods in processRaw materialsFactory supplies3 |PageINTERMEDIATE ACCOUNTING 1Data for the current yearSales3,000,000Purchases1,000,000Freight-in100,000Direct labor800,000Manufacturing overhead - 50% of direct labor ?Average gross profit on sales30%18. What is the cost of goods sold?19. What is the cost of goods manufactured?20. What is the estimated cost of the ending goods in process that were completely destroyed by fire?

Costs of Goods Sold: It is the sum of all the costs of the product that is directly contributed by…

Items 18 to 20 At year-end, Erich Company had a fire which destroyed the goods in process inventory. A physic inventory was taken after the fire. The raw materials were valued at P600,000, the finished goods at P1,000,000 and factory supplies P100,000 at year-end. The beginning inventories consisted of the following: Finished goods Goods in process 1,400,000 1,000,000 Raw materials 300,000 Factory supplies 400,000 3|Page INTERMEDIATE ACCOUNTING 1 Data for the current year Sales 3,000,000 Purchases 1,000,000 Freight-in 100,000 800,000 Direct labor Manufacturing overhead - 50% of direct labor ? Average gross profit on sales 30% 18. What is the cost of goods sold? 19. What is the cost of goods manufactured? 20. What is the estimated cost of the ending goods in process that were completely destroyed by fire?

Items 18 to 20 At year-end, Erich Company had a fire which destroyed the goods in process inventory. A physic inventory was taken after the fire. The raw materials were valued at P600,000, the finished goods at P1,000,000 and factory supplies P100,000 at year-end. The beginning inventories consisted of the following: Finished goods Goods in process 1,400,000 1,000,000 Raw materials 300,000 Factory supplies 400,000 3|Page INTERMEDIATE ACCOUNTING 1 Data for the current year Sales 3,000,000 Purchases 1,000,000 Freight-in 100,000 800,000 Direct labor Manufacturing overhead - 50% of direct labor ? Average gross profit on sales 30% 18. What is the cost of goods sold? 19. What is the cost of goods manufactured? 20. What is the estimated cost of the ending goods in process that were completely destroyed by fire?

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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