On September 25, 2010, a hurricane destroyed the work in process inventory of Biloxi Corporation. - 88220

Solution Posted by
Mastertutor

Mastertutor

Rating : No Rating
Solution Detail
Price: $4.49
  • From: Business, Accounting
  • Posted on: Tue 10 Feb, 2015
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description
On September 25, 2010, a hurricane destroyed the work in process inventory of Biloxi Corporation. At that time, the company was in the process of manufacturing two custom jobs (B325 and Q428). Although all of the Biloxi's on-site accounting records were destroyed, the following information is available from some backup off-site records: Biloxi Corp. applies overhead at the rate of 85 percent of direct labor cost. The cost of goods sold for the company averages 75 percent of selling price. Sales from January 1 to the date of hte hurricane totaled $1,598,000. The company's wage rate for production employees is $12.90 per hour. A total of 25,760 direct labor hours were recorded from January 1 through September 25. As of September 25, $21,980 of direct material and 128 hours of direct labor had been recorded for Job B325. Also at that time, $14,700 of direct material and 240 hours of direct labor had been recorded for Job Q428. January 1, 2010, inventories were as follows: $19,500 of Raw Material and $68,900 of Finished Goods. Raw materials purchased during 2010 totaled $843,276. The amount of Work in Process Inventory at January 1, 2010, was $14,600. Jobs B325 and Q428 were not in process on January 1. One job R91, was completed and in the warehouse awaiting shipment on September 25. The total cost of this job was $165,600. Determine the following amounts: a. Cost of goods sold for the year b. Cost of goods manufactured during the year. c. Amount of applied overhead for each job in WIP Inventory d. Cost of WIP Inventory destroyed by the hurricane e. Cost of RM Inventory destroyed by the hurricane. Cost Accounting 8th ed. Kinney and Raiborn Page 191 Exercise 19
Solution Description
Attachments
On_September_25,_2010,_a_hurricane_destroyed_the_work_in_process_inventory_of_Biloxi_Corporation_COM
On_September_25...