An auditor for the IRS is trying to reconstruct partially destroyed records of a business. He finds
Fantastic news! We've Found the answer you've been seeking!
Question:
An auditor for the IRS is trying to reconstruct partially destroyed records of a business. He finds the following information. | |||||||
balance sheet accounts as of | 31-Dec-19 | 31-Dec-20 | |||||
accounts receivable | $1,550 | $1,625 | |||||
FG inventory | $4,330 | $5,270 | |||||
WiP inventory | $900 | $1,255 | |||||
RM inventory | $1,780 | ||||||
IS and CF statement accounts for year ending | 31-Dec-19 | 31-Dec-20 | |||||
CGS | $24,250 | $23,550 | |||||
RM used | $11,800 | $12,790 | |||||
RM purchases | $12,200 | $11,200 | |||||
DL incurred | $6,130 | $5,945 | |||||
Collections from customers | $29,700 | $29,700 | |||||
Calculate the cost of goods manufactured.
12,790 - 11,200 + 1,780 = 3370 |
Calculate the manufacturing overhead incurred.
Calculate the beginning balance in RM inventory.
Calculate the revenues earned for the year.
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133428704
15th edition
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Posted Date: