The work in process inventories of Jungkook Manufacturing, Inc. were completely destroyed by fire on June 1, 2021. Amounts for the following accounts have been established. · Accounts payable, Jan. 1, 2021- P117,000 · Accounts payable, Jun. 1, 2021- P135,000 · Raw materials, Jan. 1, 2021- P15,000 · Raw materials, Jun. 1, 2021- P18,000 · Work in process, Jan. 1, 2021- P60,000 · Finished goods, Jan. 1, 2021- P69,000 · Finished goods, Jun. 1, 2021- P87,000 The following additional information was determined: · Payments to suppliers for purchases on account, P60,000. · Freight on purchases, P3,000. · Purchase returns, P7,500. · Direct labor, P48,000. · Production overhead, P18,000. · Sales from January 1 to May 31, P225,000. · Sales returns, P45,000. · Sales discounts, P15,000. · Gross profit rate based on sales, 25%. How much is the work in process destroyed by fire?
The work in process inventories of Jungkook Manufacturing, Inc. were completely destroyed by fire on June 1, 2021. Amounts for the following accounts have been established.
· Accounts payable, Jan. 1, 2021- P117,000
· Accounts payable, Jun. 1, 2021- P135,000
· Raw materials, Jan. 1, 2021- P15,000
· Raw materials, Jun. 1, 2021- P18,000
· Work in process, Jan. 1, 2021- P60,000
· Finished goods, Jan. 1, 2021- P69,000
· Finished goods, Jun. 1, 2021- P87,000
The following additional information was determined:
· Payments to suppliers for purchases on account, P60,000.
· Freight on purchases, P3,000.
· Purchase returns, P7,500.
· Direct labor, P48,000.
· Production
· Sales from January 1 to May 31, P225,000.
· Sales returns, P45,000.
· Sales discounts, P15,000.
· Gross profit rate based on sales, 25%.
How much is the work in process destroyed by fire?
A. 48,000
B. 49,500
C. 58,500
D. 51,000
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