Solution-Calculate the normal cost of the work in process

Calculate the normal cost of the work in process inventory

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Reference no: EM132475940

On November 30, 2020, there was a fire in the factory of Able Manufacturing Limited, where you work as the controller. The work In process inventory was completely destroyed, but both the materials and finished goods inventories were undamaged.
Able uses normal job-order costing and its fiscal year end is December 31. Selected information for the periods ended October 31, 2020, and November 30, 2020, follows:

	October 31, 2020	November 30, 2020
Supplies (including both direct and indirect materials)	$79,950	$73,350
Work in process inventory	59,775
Finished goods inventory	59,200	63,500
Cost of goods sold (year to date)	574,000	665,200
Accounts payable (relates to materials purchased only)	18,960	54,080
Manufacturing overhead incurred (year to date)	130,500	172,300
Manufacturing overhead applied	128,800
Other Information for November 2020:
Cash payments to suppliers	$59,200
Payroll (including $16,370 indirect)	84,000
Indirect materials used	5,870
Over-applied overhead (during November only)	2,780

Question 1: Calculate the normal cost of the work in process inventory lost during the fire.

Reference no: EM132475940

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Calculate the normal cost of the work in process inventory

Reference no: EM132475940

Reference no: EM132475940

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