Reconstruct Missing Data: Disaster struck the only manufacturing plant of the Complete Transaction Equipment Corporation on December I . All the work in process inventory was destroyed. A few records were salvaged from the wreckage and from the company's headquarters. The insurance company has stated that it will pay the cost of the lost inventory if adequate documentation can be supplied. The insurable value of work in process inventory is made up of direct materials, direct labor, and applied overhead. The following information about the plant appears on the October financial statements at the company's headquarters:

A count of the inventories on hand November 30 shows:

The accounts payable clerk tells you that there are outstanding bills to suppliers of $50, 100 and that cash payments of $37,900 have been made during the month to these suppliers The payroll clerk informs you that the payroll costs last month included $82,41)0 for the manufacturing section and that $14,700 of this was indirect labor. At the end of November, the following balances were available from the main office.

You recall that each month there is only one requisition for indirect materials. Among the fragments of paper, you located the following pieces:

You also learn that the overhead during the month was overapplied by $1.200.

Required: Determine the cost of the work in process inventory lost in the disaster.

Transcribed Image Text:

Materials inventory, October 31 Work in process inventory, October 31 Finished goods inventory, October 31 Cost of goods sold through October 31 Accounts payable, materials suppliers on October 31 Manufacturing overhead through October 31 Payroll payable on October 31 Withholding and other payroll liabilities on October 31 Overhead applied through October 31 $ 49,000 86,200 32,000 348,600 21,600 184,900 -0- 9,700 179,600