Question

Problem 3.35A 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: November October 31, 30, 2020 2020 Supplies (including both direct and indirect materials) $80,250 $73,700 Work in process inventory 59,575 Finished goods inventory 63,100 59,200 Cost of goods sold (year to date) 574,500 662,200 Accounts payable (relates to materials purchased only) 18,960 53,650 168,300 Manufacturing overhead incurred (year to date) 129,700 Manufacturing overhead applied 129,200 ? Other information for November 2020: Cash payments to suppliers $59,200 Payroll (including $16,070 indirect) 84,500 5,850 Indirect materials used Over-applied overhead (during November only) 2,770 Calculate the normal cost of the work in process inventory lost during the fire. Cost of the work in process inventory

Answer 1

Answer page;o) Required normal cost of the work in process inventory lost dwing the fine Manufacturing overheads Pacurised on Nov. 30.2020 $168300 manufacturing overheads Pound on oct 31,2090 $189700 (+168300 - manufacturing overheads incurred 10 november $129700 $38600 over applied overbeads. in november Monytauturing ovenhend applied io november (38600+ 2470) 441370 $ 270 $53650 $59200 $18960 $153650+59200) $18960 $93890 Accounts payable on november 30, 2000 cash payments to suppliers Accounts payable on oct 3..2020 supplies purchased in november Supplies on October 31, 2020 Supplies on Dovember 30, 2020. Supplies used in november indixed materials used direct materials used $ 80250 $ 73700 (493890+$802 :50)- # 13700 $100440 $ 5850 $94590

page:02 Direct materials used $94590 Direct labor_184500 - 16070) $ 68430 (94950+684 (prime cost 30) $163380 Indixed materials $5850 indirect labor $16070 manufatwing Overhead applied.co november 41370 waikio process inventory on ost 31, 2020 $59575 work in process inventary on nov 30, 2020 $63100 (286245 +592 cost of production during november, $286245 faished goods, inventory en oct.31,2020 $ 59200 m . sinventory on nov 30, 2010 cost & goods sold in november 30) = 63100 4282345 cost $i geants sold up to ost 31, 2020 cost $ goods sold up to nov 30.2020 (282345 +574 Lcost of work in process inventoly lost due to line! 500)-6622004194645 $ 574500 $662,200 cost of the work in process inventory + [194645 non