Xyz manufacturing company suffered major losses in a fire

Assignment Help Accounting Basics

Reference no: EM13481789

XYZ Manufacturing Company suffered major losses in a fire on December 18, 2009. In addition to destroying several buildings, the blaze destroyed the company's work in process inventory for an entire product line. Fortunately, the company was insured; however, it needs to substantiate the amount of the claim. To this end, the company has gathered the following information that pertains to production and sales of the affected product line:

1. The company's sales for the first 18 days of December amounted to $460,000. Normally, this product line generates a gross profit equal to 40 percent ofsales.

2. Finished Goods Inventory was $58,000 on December 1 and $85,000 on December 18.

3. On December 1, Work in Process Inventory was $96,000.

4. During the first 18 days of December, the company incurred the following costs:

Direct material used $152,000 Direct labor 88,000

Manufacturing overhead 84,000

Determine the value of Work in Process Inventory that was destroyed by the fire.

Reference no: EM13481789

Questions Cloud

A business issued a 45-day note 6 nore for 80000 to a : a business issued a 45-day note 6 nore for 80000 to a creditor on account. journalize the entries to record a the

Lance and wanda dean are married lance works for the : lance and wanda dean are married. lance works for the convention bureau of the local chamber of commerce while wanda is

A borrower has two alternatives for a loan 1 issue a 180000 : a borrower has two alternatives for a loan 1 issue a 180000 45-day 10 note or 2 issue a 180000 45-day note that the

Dscribes changes in paid-in capital and retained earnings : the statement of changes in stockholders equity is part of the statement of retained earnings. shows only the ending

Xyz manufacturing company suffered major losses in a fire : xyz manufacturing company suffered major losses in a fire on december 18 2009. in addition to destroying several

Hardly a day goes by without an article appearing on the : hardly a day goes by without an article appearing on the crises affecting many of our financial institutions in the

Prepare journal entries to correct these errors ignore : kris inc discovered the followingerrors after the 2008 financial statements were issueda. a major supplier shipped

Callie was admitted to the adams amp beal partnership four : callie was admitted to the adams amp beal partnership four years ago. the partnership has a deficiency at year end for

For financial accounting purposes assets of an individual : for financial accounting purposes assets of an individual partner contributed to a partnership are recorded by the

User Account

All Pages