The cost accountant was working on the first quarter results before the storm hit , and to his surprise , the report was still in his desk drawer . After reviewing the data , the information shows the following information : Material purchases were $ 325,000 ; Direct Labor was $ 220,000 . Further discussions between the controller and the cost accountant revealed that sales were $ 1,350,000 and the gross margin was 30 % of sales . The cost accountant also discovered , while sifting through the information , that cost of goods available for sale was $ 1,020,000 at cost . While assessing the damage , the controller determined that the prime costs were $ 545,000 up to the time of the damage and that manufacturing overhead is 65 % of conversion cost . The cost accountant is not sure about all of this , but he decides to see what he can do with the information .
The beginning inventory numbers are as follows :
Raw Materials , $ 41,000 Work in Process , $ 56,000 Finished Goods , $ 35,000
Required :
Determine the amount of cost in the Raw Materials , Work in Process , and Finished Goods Inventory as of the date of the storm . ( Hint : You may wish to reconstruct the various schedules and statements that would have been affected by the company ’ s accounts during the period .)
Grading Rubric for Case Study I : CategoryPointsDescription Documentation & Formatting