Reference no: EM132958318

Question - On February 20, 2020, a flood completely destroyed the goods in process inventory and half the raw materials inventory of the Climb Company. There was no damage to the finished goods inventory. A physical inventory taken after the flood indicated the following values: Raw materials P 35,000 Finished goods P 75,000 A review of the accounting records indicated the following:

Inventories, December 31, 2020 Raw materials P 65,000

Raw materials purchases P 20,000

Goods in process 80,000

Direct labor cost 30,000

Finished goods 72,000

Manufacturing overhead cost 15,000

Sales (to February 20) 40,000

Gross profit rate (on sales) 40%

Required - Find the value of the inventory destroyed by flood?