On February 17, 2007 a flood destroyed the work in process inventory and half the raw materials
Question:
On February 17, 2007 a flood destroyed the work in process inventory and half the raw materials inventory of the LRT Company. There was no damage to the finished goods inventory. A physical inventory taken after the flood indicated the following values:
Raw materials $35,000 Finished goods $79,000
A review of the accounting records indicated the following:
Inventories, December 31, 2006
Required
Compute the value of the inventory destroyed by theflood.
Transcribed Image Text:
Raw materials Work in process Finished goods $70,000 80,000 72,000 50,000 Raw materials purchases Direct labor cost Manufacturing overhead cost Gross profit rate (on sales) $20,000 30,000 15,000 40% Sales (to February 17)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 64% (14 reviews)
LRT COMPANY Computation of Value of Inventory Lost February 17 2007 Sales 50000 Less Gross profit 40 ...View the full answer
Answered By
Muhammad Umair
I have done job as Embedded System Engineer for just four months but after it i have decided to open my own lab and to work on projects that i can launch my own product in market. I work on different softwares like Proteus, Mikroc to program Embedded Systems. My basic work is on Embedded Systems. I have skills in Autocad, Proteus, C++, C programming and i love to share these skills to other to enhance my knowledge too.
3.50+
1+ Reviews
10+ Question Solved
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Question Posted:
Students also viewed these Accounting questions
-
On February 17, 2010, a flood destroyed the work in process inventory and half the raw materials inventory of the LRT Company. There was no damage to the finished goods inventory. A physical...
-
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)....
-
On September 25, a disaster destroyed the work in process inventory for company A. At the time the company was in the process of manufacturing to custom jobs (B and Q); although all of the accounting...
-
The following sequences of bits (rightmost bit first) appear at the inputs of a 4-bit parallel adder. Determine the resulting sequence of bits on each output. A1 1 0 0 1 A2 1 1 1 0 A3 0 0 0 0 A4 1 0...
-
Kay, who is not a dealer, sold an apartment house to Polly during 2013. The closing statement for the sale is as follows: During 2013, Kay collected $9,000 in principal on the installment note and...
-
What is new and different about analysis of bivariate data compared to univariate data?
-
Cash Management Hiboux Corporation has the following budgeted schedule for expected cash receipts and cash disbursements. Hiboux begins July with a cash balance of \(\$ 20,000, \$ 15,000\) of...
-
Paul Nasipak owns a business called Diamond Distributors. The following transactions took place during January of the current year. Journalize the transactions in a general journal using the periodic...
-
2. A pilot in an airplane with an airspeed of 1000 km/h wishes to fly to a city 2000 km due cast. There is a wind blowing from 0250 at a speed of 100 km/h. Draw a velocity diagram of the situation....
-
Lily Zhang started a new business on January 1, 2020, called Zhang Consulting. She develops financial investment plans for young adults. During the business?s first year of operations, the following...
-
On January 20, 2008 the records of the Stewart Company revealed the following information: A fire destroyed the entire inventory on January 20, 2008 except for purchases in transit, FOB shipping...
-
On June 30, 2007 a flash flood damaged the warehouse and factory of Padway Corporation, completely destroying the work-in-process inventory. There was no damage to either the raw materials or...
-
You step onto a hot beach with your bare feet. A nerve impulse, generated in your foot, travels through your nervous system at an average speed of 110 m/s. How much time does it take for the impulse,...
-
You are the auditor in charge of the audit of the payroll system for an organization. One of your staff performs a code review of the input validation program for timecard data. She brings the...
-
Finer Furnishings Limited is a Vancouver-based company that makes an extensive range of furniture for sale throughout North America. While it produces a wide range of standard lines of furniture,...
-
Review Aritzias 2021 annual report. Answer the following questions about Aritzias internal controls and cash position: 1. What is the name of Aritzias outside auditing firm? What is the date of the...
-
Swagmans Banking Corporation is a large Australian bank based in Melbourne. It offers a wide range of services to customers in Australia through an extensive network of branches. Swagmans has decided...
-
You are the manager of internal audit for a large North America-based financial institution. One day your staff report to you that they have discovered an error in the amount of interest paid to a...
-
Again, consider the position and data of Exercise 1. In this exercise, apply the GPD with threshold \(2.5 \%\) to obtain the parameter estimates and the corresponding diagnostic plots. Compute...
-
Which of the following is FALSE regarding the purchasing power parity (PPP). a. The PPP is a manifestation of the law of one price b. The PPP says that a country with a higher expected inflation can...
-
Find an equation of the plane passing through the three points given. P= (2,-1,4), Q=(1,1,1), R=(3, 1,-2)
-
(Pension Terminology and Theory) Many business organizations have been concerned with providing for the retirement of employees since the late 1800s. During recent decades a marked increase in this...
-
(Pension Terminology) The following items appear on Brueggen Companys financial statements. 1. Under the caption Assets: Pension asset/liability 2. Under the caption Liabilities: Pension...
-
(Pension Terminology) The following items appear on Brueggen Companys financial statements. 1. Under the caption Assets: Pension asset/liability 2. Under the caption Liabilities: Pension...
-
Depreciation Methods at Google Values: Asset Cost: $1,000,000 Useful Life: 5 years Salvage Value: $100,000 Requirements: Apply the conservatism principle to determine asset impairment. Calculate...
-
Consider the following data for Amazon: Selling price per unit: $50 Variable cost per unit: $30 Fixed costs: $200,000 i) Calculate the contribution margin per unit. ii) Determine the break-even point...
-
Sophia was recruited to serve as the Chief Human Resources Officer (CHRO) of Epsilon Corporation, a privately-held company in the automotive industry, effective June 1, 2022. Throughout the fiscal...
Study smarter with the SolutionInn App