Problem 4-23 "Of all the times this hard drive could crash, it had to be now, " Marcy cried. "How can I finish the June financial reports without all the information? I knew I should have backed up the disk last night before I left work." News of the disaster traveled quickly through the office, and people began to stop by her cubicle to offer their help. John was the first to the rescue. "It might not be as bad as you think, Marcy. I have the financial reports from May right here. According to the balance sheet, we had a total inventory of $96,000 at the end of May. And I remember that the Finished Goods Inventory was one-third of that amount." "I just finished the inventory counts last night," Peter chimed in from across the hall. "According to my tally sheets, we finished June with $80,000 in Direct Materials Inventory, $50,000 in Work in Process Inventory, and $24,000 in Finished Goods Inventory. This was a 100% increase from the balances in Direct Materials Inventory and Work in Process Inventory at the end of May. I bet with a little more investigative work, we can get all the numbers you need to complete the reports." Sally called from Payroll to tell Marcy that the company had paid a total of $35,000 for direct labor during June. Juan, the billing supervisor, e-mailed Marcy that the company had sent out invoices to customers totaling $300,000. Marcy knew that the overhead rate was 200% of direct labor costs. She also knew that the company priced its product using a 50% markup on the cost of goods sold. Armed with all this information, she sat down to reconstruct the inventory accounts for June. | Your answer is incorrect. Try again. (1) Calculate the begininng finished goods. (Round answer to the nearest dollar amount, e.g. 5,275.) Begininng finished goods $: (2) Calculate the beginning direct materials. Beginning direct materials (3) Calculate the beginning work in process. Beginning work in process
Problem 4-23 "Of all the times this hard drive could crash, it had to be now, " Marcy cried. "How can I finish the June financial reports without all the information? I knew I should have backed up the disk last night before I left work." News of the disaster traveled quickly through the office, and people began to stop by her cubicle to offer their help. John was the first to the rescue. "It might not be as bad as you think, Marcy. I have the financial reports from May right here. According to the balance sheet, we had a total inventory of $96,000 at the end of May. And I remember that the Finished Goods Inventory was one-third of that amount." "I just finished the inventory counts last night," Peter chimed in from across the hall. "According to my tally sheets, we finished June with $80,000 in Direct Materials Inventory, $50,000 in Work in Process Inventory, and $24,000 in Finished Goods Inventory. This was a 100% increase from the balances in Direct Materials Inventory and Work in Process Inventory at the end of May. I bet with a little more investigative work, we can get all the numbers you need to complete the reports." Sally called from Payroll to tell Marcy that the company had paid a total of $35,000 for direct labor during June. Juan, the billing supervisor, e-mailed Marcy that the company had sent out invoices to customers totaling $300,000. Marcy knew that the overhead rate was 200% of direct labor costs. She also knew that the company priced its product using a 50% markup on the cost of goods sold. Armed with all this information, she sat down to reconstruct the inventory accounts for June. | Your answer is incorrect. Try again. (1) Calculate the begininng finished goods. (Round answer to the nearest dollar amount, e.g. 5,275.) Begininng finished goods $: (2) Calculate the beginning direct materials. Beginning direct materials (3) Calculate the beginning work in process. Beginning work in process
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Problem 4-23
"Of all the times this hard drive could crash, it had to be now, " Marcy
cried. "How can I finish the June financial reports without all the
information? I knew I should have backed up the disk last night before I
left work." News of the disaster traveled quickly through the office, and
people began to stop by her cubicle to offer their help.
John was the first to the rescue. "It might not be as bad as you think,
Marcy. I have the financial reports from May right here. According to the
balance sheet, we had a total inventory of $96,000 at the end of May.
And I remember that the Finished Goods Inventory was one-third of that
amount."
"I just finished the inventory counts last night," Peter chimed in from
across the hall. "According to my tally sheets, we finished June with
$80,000 in Direct Materials Inventory, $50,000 in Work in Process
Inventory, and $24,000 in Finished Goods Inventory. This was a 100%
increase from the balances in Direct Materials Inventory and Work in
Process Inventory at the end of May. I bet with a little more investigative
work, we can get all the numbers you need to complete the reports."
Sally called from Payroll to tell Marcy that the company had paid a
total of $35,000 for direct labor during June. Juan, the billing supervisor,
e-mailed Marcy that the company had sent out invoices to customers
totaling $300,000.
Marcy knew that the overhead rate was 200% of direct labor costs.
She also knew that the company priced its product using a 50% markup
on the cost of goods sold. Armed with all this information, she sat down
to reconstruct the inventory accounts for June.
| Your answer is incorrect. Try again.
(1) Calculate the begininng finished goods. (Round answer to the
nearest dollar amount, e.g. 5,275.)
Begininng finished goods
$:
(2) Calculate the beginning direct materials.
Beginning direct materials
(3) Calculate the beginning work in process.
Beginning work in process
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education