Lexington Corp. recently lost a portion of its records in a data breach. The following information was retrieved: Item Cost of Goods Sold Amount $80,000 Work-in-Process Inventory, Beginning $12,000 Work-in-Process Inventory, Ending $10,500 Selling and Administrative Expense $18,000 Finished Goods Inventory, Ending $20,000 Finished Goods Inventory, Beginning Unknown Direct Materials Used Unknown Factory Overhead Applied $16,000 Operating Income $20,000 Direct Materials Inventory, Beginning $14,000 Direct Materials Inventory, Ending $9,000 $75,000 Cost of Goods Manufactured Direct labor costs incurred during the period amounted to twice the factory overhead. Calculate the amount of direct materials purchased.

Lexington Corp. recently lost a portion of its records in a data breach. The following information was retrieved: Item Cost of Goods Sold Amount $80,000 Work-in-Process Inventory, Beginning $12,000 Work-in-Process Inventory, Ending $10,500 Selling and Administrative Expense $18,000 Finished Goods Inventory, Ending $20,000 Finished Goods Inventory, Beginning Unknown Direct Materials Used Unknown Factory Overhead Applied $16,000 Operating Income $20,000 Direct Materials Inventory, Beginning $14,000 Direct Materials Inventory, Ending $9,000 $75,000 Cost of Goods Manufactured Direct labor costs incurred during the period amounted to twice the factory overhead. Calculate the amount of direct materials purchased.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter3: Internal Control Over Financial Reporting: Responsibilities Of Management And The External Auditor

Section: Chapter Questions

Problem 18RQSC

See similar textbooks

Similar questions

The following information was taken from the accounting records of Elliott Manufacturing Corporation. Unfortunately, some of the data were destroyed by a computer malfunction. Sales Revenue $ 60,250 Finished Goods Inventory, Beginning 9,750 Finished Goods Inventory, Ending 6,600 Cost of Goods Sold ? Gross Margin 26,950 Direct Materials Used 10,450 Selling and Administrative Expense ? Operating Income 14,600 Work-in-Process Inventory, Beginning ? Work-in-Process Inventory, Ending 5,450 Direct Labor Used 9,225 Factory Overhead 12,300 Total Manufacturing Cost ? Cost of Goods Manufactured ? Cost of goods sold is calculated to be: Multiple Choice $32,300. $30,150. $27,300. $33,300. $38,300.
The following information was taken from the accounting records of Elliott Manufacturing Corp. Unfortunately, some of the data were destroyed by a computer malfunction. Sales Revenue $58,000 Finished Goods Inventory, Beginning 9,000 Finished Goods Inventory, Ending 6,000 Cost of Goods Sold Gross Margin 25,000 Direct Materials Used 10,000 Selling and Administrative Expense Operating Income Work-in-Process Inventory, Beginning Work-in-Process Inventory, Ending 14,000 5,000 Direct Labor Used 9,000 Factory Overhead 12,000 Total Manufacturing Cost Cost of Goods Manufactured Work in process inventory, beginning, is calculated to be:
Palladium, Incorporated recently lost a portion of its records in an office fire. The following information was salvaged from the accounting records. Cost of Goods Sold $ 72,500 Work-in-Process Inventory, Beginning 13,500 Work-in-Process Inventory, Ending 10,500 Selling and Administrative Expense 18,750 Finished Goods Inventory, Ending 19,125 Finished Goods Inventory, Beginning ?question mark Direct Materials Used ?question mark Factory Overhead Applied 13,500 Operating Income 14,825 Direct Materials Inventory, Beginning 11,675 Direct Materials Inventory, Ending 6,525 Cost of Goods Manufactured 67,050 Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The Chief Financial Officer of Palladium, Incorporated has asked you to recalculate the following accounts and to report to him by the end of the day. What is the amount of direct materials purchased?
Palladium, Incorporated recently lost a portion of its records in an office fire. The following information was salvaged from the accounting records. Cost of Goods Sold $ 67,000 Work-in-Process Inventory, Beginning 11,300 Work-in-Process Inventory, Ending 9,400 Selling and Administrative Expense 16,000 Finished Goods Inventory, Ending 16,100 Finished Goods Inventory, Beginning ?question mark Direct Materials Used ?question mark Factory Overhead Applied 12,400 Operating Income 14,220 Direct Materials Inventory, Beginning 11,180 Direct Materials Inventory, Ending 6,140 Cost of Goods Manufactured 61,880 Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The Chief Financial Officer of Palladium, Incorporated has asked you to recalculate the following accounts and to report to him by the end of the day. What is the amount in the finished goods inventory at the beginning of the year?
XYZ Company developed the following data for the current year: Ending work in process inventory OMR225,000; Direct materials used OMR96,000; Manufacturing Overhead applied OMR144,000; Cost of goods manufactured OMR350,000; Direct labor cost OMR240,000. Company's beginning work in process inventory is Select one: a. None of the answers given O b. OMR120,000 O c. OMR355,000 O d. OMR605,000 O e. OMR95,000
Conrad, Inc. recently lost a portion of its records in an office fire. The following information was salvaged from the accounting records. Cost of Goods Sold $ 65,000 Work-in-Process Inventory, Beginning 10,500 Work-in-Process Inventory, Ending 9,000 Selling and Administrative Expense 15,000 Finished Goods Inventory, Ending 15,000 Finished Goods Inventory, Beginning ? Direct Materials Used ? Factory Overhead Applied 12,000 Operating Income 14,000 Direct Materials Inventory, Beginning 11,000 Direct Materials Inventory, Ending 6,000 Cost of Goods Manufactured 60,000 Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The CFO of Conrad, Inc. has asked you to recalculate the following accounts and to report to him by the end of the day. What is the amount of total manufacturing cost?
XYZ Company developed the following data for the current year: Ending work in process inventory OMR250,000 ; Direct materials used OMR96,000 ; Manufacturing Overhead applied OMR144,000 ; Cost of goods manufactured OMR350,000; Direct labor cost OMR240,000. Company's beginning work in process inventory is Select one: O a. OMR380,000 O b. None of the answers given O c. OMR120,000 O d. OMR145,000 O e. OMR580,000
E8-3 Inventoriable Costs : Assume that in an annual audit of Harlowe Inc. at December 31, 2014 , you find the following transactions near the closing date. 1) A special machine , fabricated to order for a customer , was finished and specifally segregated in the back part of the shipping room on December 31, 2014. The customer was billed on that date and the machine excluded from inventory although it was shipped on January 4, 2015. 2) Merchadise costing $2,800 was recevied on January 3, 2015, and the related purchase invoice recorded January 5. The invoice showed the shipment was made on Decemeber 29, 2014 , f.o.b. destination 3) A packing case containing a product costing $3,400 was standing in the shipping room when the physical inventory was taken. It was not included in the inventory because it was marked " Hold for shipping instructions." Your investigation revealed theat the customer's order was dated December 18,2014, but that the case was shipped and the customer billed on…
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…
10) Conrad, Incorporated recently lost a portion of its records in an office fire. The following information was salvaged from the accounting records. Cost of Goods Sold $ 65,000 Work-in-Process Inventory, Beginning 10, 500 Work - in - Process Inventory, Ending 9,000 Selling and Administrative Expense 15,000 Finished Goods Inventory, Ending 15,000 Finished Goods Inventory, Beginning? Direct Materials Used? Factory Overhead Applied 12,000 Operating Income 14,000 Direct Materials Inventory, Beginning 11,000 Direct Materials Inventory, Ending 6,000 Cost of Goods Manufactured 60,000 Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The Chief Financial Officer of Conrad, Incorporated has asked you to recalculate the following accounts and to report to him by the end of the day. What is the amount of direct materials purchased?
On October 1, 20x1, the warehouse of ABC Co. and all the inventories contained therein were damaged by flood. Off-site back up of data base shows the following information: Inventory, Jan. 1 10,000 Accounts payable, Jan. 1 3,000 Accounts payable, Sept. 30 2,000 Payments to suppliers 50,000 Freight-in 500 Purchase returns 500 Sales from Jan. to Sept. 80,000 Sales returns 5,000 Sales discounts 2,000 Gross profit rate based on sales 30% Additional information: Goods in…
Please explain in detail