Estimate finished goods cost of goods sold , Cost Accounting

ln an attempt to conceal a thefi of funds, Kaito Kid, controller of Shinichi Products, lnc. placed a bomb in the company s record vault. The ensuing explosion left only fragments of the company's factory ledger, as shown below:

Finished Goods Cost of Goods Sold

To bring Mr. Kid to justie, the company must reconstruct its activities for June. You have been assigned to perform the task of reconstruc*ion. After interviewing selected employees and sifting through chaned fragments, you have determined the following additional irrformation:

a. According to the company's treasurer, the accounts payable are for purchases of raw materials only. The company's balance sheet, dated May 31, shows thatAccounts Payable had a P20,000 balance at the beginning of June. The companfs bank has provided
photocopies of all chec*s that cleared the bank during June. These photocopies show that payments to suppliers during June totaled P119,000. (All materials used during the month neredird mderiats.)

b. The production superintendent states that mantrfacturing ovefiead cost is applied to jobs on the basis of direct labor hours. However, he does not rememberthe rate cunently being used by the company.

c. Cost sheets kept in the produc{ion superintendenfs office shonr that only one job was in prrcess on June 30, at the time of the explosion. The job had been charged with P6,600 in materials, and 500 direc't labor hours at PO per hour had been worked on the job.

d. A log is kept in the finished goods warehouse showing all goods transfend in frorn the factory. This log shors that the cost of goods transfened into the finished goods warehouse ftom the fac'tory during June totaled P280,000.

e. The compant's May 31 balance sheet indicates thatthe finished goods inventory totaled P36,000 at the @inning of June.

f. A chaned piece of the payroll ledger, found after sifting through piles of smoking debris, indicates that 11,500 direct labor hours were recorded for June. The company's Personnel Department has verified that as a result of a union contrac't, there are no variations in pay
rates among fac{ory employees.

Posted Date: 4/2/2013 2:45:56 AM | Location : United States

Related Discussions:- Estimate finished goods cost of goods sold , Assignment Help, Ask Question on Estimate finished goods cost of goods sold , Get Answer, Expert's Help, Estimate finished goods cost of goods sold Discussions

Write discussion on Estimate finished goods cost of goods sold
Your posts are moderated
Related Questions
Inventory, Supplies and Prepaid Expenses You can well understand the requirements for carrying inventory. So as to  carry  on operations unhindered we require to have sufficien

Manufacturing Concern to Organization There are three manufacturing centres as Making, Packing and Finishing.  These are supported through five support departments, namely Mai

Freshly Ground Investments have just made an investment of $550 000 in a new Toyota Hilux (with trailer) delivery vehicle. This vehicle will be used for deliveries and generate rev

Find Out the Cost per Unit Material A is added at the start of a production process. Overheads and Labor are added continuously throughout the production process. At the endi

prepare a trading and profit and loss accounts for the period using marginal costing and absorption costing

manufacturing costs will not include a. indirect material used b. sales salaries expense c. indirect labor costs d. depreciation of factory equipment

Which statement best describes a sunk cost? A a cost which is irrelevant for the future B a cost which must be matched against the revenue C a cost which remains the same at all le

Assume your grandparents have just given you $20,000 on the condition that you invest the money in the stock market. As you contemplate making your investment choices, what accoun

Identify the individual cost components and the total cost of delivering the product from supplier to retailer.   Identify each cost in terms of the incremental addition to the pro

Cash is the other form of fund although in a narrow sense, this refers to a supply which can be drawn upon as per to the need. Here the term cash involves both cash and cash equiva