Question
A fire completely destroyed a plant and its contents on February 26th. Fortunately certain accounting records were kept in another building. They revealed the following
A fire completely destroyed a plant and its contents on February 26th. Fortunately certain accounting records were kept in another building. They revealed the following for 31st December 2002 to February 26th2004. Sales$500,000 Direct labor cost 180,000 Prime cost..294,000 Gross profit rate.. 20% DM purchased160,000 Cost of goods available for sale.450, 000 DM (12, 31, 2002)..160,000 WIP (12, 31, 2002)..34, 000 F.G (12, 31, 2002)...30, 000 FOH 40% of conversion cost.. ? Instruction: Compute the cost of DM inventory lost by fire WIP inventory lost by fire F.G inventory lost by fire
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