Xyz manufacturing company suffered major losses in a fire

Assignment Help Accounting Basics

Reference no: EM13611083

XYZ Manufacturing Company suffered major losses in a fire onDecember 18, 2009. In addition to destroying several buildings, theblaze destroyed the company's work in process inventory foran entire product line. Fortunately, the company was insured;however, it needs to substantiate the amount of the claim. To thisend, the company has gathered the following information thatpertains to production and sales of the affected product line:

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

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

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

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

Direct materialused $152,000 Directlabor 88,000

Manufacturingoverhead 84,000

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

Reference no: EM13611083

Questions Cloud

Acme company purchased equipment on january 1 2007 at acost : acme company purchased equipment on january 1 2007 at acost of 180000. the equipment is expected to have a useful

A fugitive tries to hop on a freight train traveling at a : a fugitive tries to hop on a freight train traveling at a constant speed of 5.0 ms. just as an empty box car passes him

Wellcom corporation has the following sales mix in units : wellcom corporation has the following sales mix in units for its three products a 20 b 35 and c 45. fixed costs total

Compute the overall thermal resistance of a wall made up of : compute the overall thermal resistance of a wall made up of 100 mm brick 1920 kgm3 and 200 mm normal weight concrete

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

A stone is dropped from the roof of a high building a : a stone is dropped from the roof of a high building. a second stone is dropped 2.50 s later. how far apart are the

Yellow dot inc sells a single product for 10 variable : yellow dot inc. sells a single product for 10. variable costs are 4 per unit and fixed costs total 120000 at a volume

Bolman inc has only variable costs and fixed costs a review : bolman inc. has only variable costs and fixed costs. a review of the companys records disclosed that when 200000 units

If the second heat engine consumes 48 tonshour of biomass : every work producing system results in wasted energy. thermal efficiency gauge sthe conversion of heat to work in a

User Account

All Pages