Mahmood recently took over as the controller of Malawe Company Manufacturing. Last month, the previous controller left the company with little notice and left the accounting records in disarray. Mahmood needs the starting inventory balances to report first-quarter numbers. For the previous month (April 2020) Mahmood was able to piece together the following information: Direct materials purchased Work-in-process inventory, 4/31/2020 Direct materials inventory, 4/31/2020 Finished-goods inventory, 4/31/2020 Conversion costs $100,000 $ 20,000 $ 10,000 $170,000 $300,000 $410,000 Total manufacturing costs added during the period Cost of goods manufactured Gross margin as a percentage of revenues Revenues Calculate the cost of Required Starting Balance for Work-in-process inventory, 4/01/2020. O 50,000 55,000 60,000 65,000 4 times direct materials used 30% $600,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Mahmood recently took over as the controller of Malawe Company Manufacturing. Last month, the previous controller left the company with little notice and left the accounting records in disarray. Mahmood
needs the starting inventory balances to report first-quarter numbers.
For the previous month (April 2020) Mahmood was able to piece together the following information:
Direct materials purchased
$100,000
Work-in-process inventory, 4/31/2020
Direct materials inventory, 4/31/2020
Finished-goods inventory, 4/31/2020
Conversion costs
$ 20,000
$ 10,000
$170,000
$300,000
$410,000
Total manufacturing costs added during the
period
Cost of goods manufactured
Gross margin as a percentage of revenues
Revenues
Calculate the cost of
4 times direct materials used
30%
$600,000
Required Starting Balance for: Work-in-process inventory, 4/01/2020.
O 50,000
55,000
60,000
O 65,000
Transcribed Image Text:Mahmood recently took over as the controller of Malawe Company Manufacturing. Last month, the previous controller left the company with little notice and left the accounting records in disarray. Mahmood needs the starting inventory balances to report first-quarter numbers. For the previous month (April 2020) Mahmood was able to piece together the following information: Direct materials purchased $100,000 Work-in-process inventory, 4/31/2020 Direct materials inventory, 4/31/2020 Finished-goods inventory, 4/31/2020 Conversion costs $ 20,000 $ 10,000 $170,000 $300,000 $410,000 Total manufacturing costs added during the period Cost of goods manufactured Gross margin as a percentage of revenues Revenues Calculate the cost of 4 times direct materials used 30% $600,000 Required Starting Balance for: Work-in-process inventory, 4/01/2020. O 50,000 55,000 60,000 O 65,000
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