ACCT 505 help A Guide to career/uophelp.com ACCT 505 help A Guide to career/uophelp.com | Page 47

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:
Category
Points
%
Description
Documentation &
Formatting
10
22%
Worksheet will be done in Excel and will contain formulas to receive
maximum credit
Organization and Cohesiveness
15