More info Is Before the disaster recovery specialists clean the buildings, Louise Ditchey, the company controller, is anxious to salvage whatever records she can to support an insurance claim for the destroyed inventory. She is standing in what is left of the Accounting Department wtih Trent Parker, the cost accountant. "I didn't know mud could smell so bad," Trent says. "What should I be looking for?" "Don't worry about beginning inventory numbers," responds Louise. "We'll get them from last year's annual report. We need first-quarter cost data." "I was working on the first-quarter results just before the storm hit," Trent says. "Look, my report's still in my desk drawer. But all I can make out is that for the first quarter, material purchases were $533,000 and that direct labor, manufacturing overhead (other than indirect materials), and total manufacturing costs to account for were $551,000; $218,000; and $1,491,000, respectively. Wait, and cost of goods available for sale was $1,615,000." "Great," says Louise. "I remember that sales for the period were approximately $1.8 million. Given our gross profit of 30%, that's all you should need." Trent is not sure about that, but decides to see what he can do with this information. Print Done Data table Raw materials, $75,000 Work in process, $226,000 Finished goods, $213,000 He remembers several schedules he learned in college that may help him get started. Print Done For question #10, you will need to calculate as much of the "Calculation of Direct Materials Used" and the "Calculation of Cost of Goods Manufactured" as possible based on the information given to determine the direct materials used. Once you calculate the direct materials used by completing as much of the "Calculation of Cost of Goods Manufactured" as possible based on the numbers provided, you can plug that number into the "calculation of direct materials used" to calculate the ending raw materials inventory. At this point, you will have calculated all the elements of the "Total manufacturing costs to account for" in the "Calculation of Cost of Goods Manufactured" except the "ending work in process inventory" and "cost of goods manufactured". Now, you will be able to calculate the "cost of goods manufactured" using the "calculation for cost of goods sold" as you are given the beginning finished goods inventory and the cost of goods available for sale. Using those two amounts, you will be able to calculate the "cost of goods manufactured" that then can be inserted into the appropriate place in the "Calculation of Cost of Goods Manufactured". Once that number is inserted in your calculation, you will be able to calculate the only remaining number in the "Calculation of Cost of Goods Manufactured", which is the ending work in process inventory. For the "Calculation of Cost of Goods Sold" you have now completed the calculation to the cost of goods available for sale line. The problem gives you the cost of goods sold based on the gross profit percentage of 30%. You may remember this calculation from ACC231, but you take the sales amount times (1 minus the gross profit percentage) to come up with the COGS amount. At this point you will be able to solve for the ending finished goods inventory amount. Unique Displays designs and manufactures displays used in mobile devices. Serious flooding throughout the region affected Unique Displays' facilities. Inventory was completely ruined, and the company's computer system, including all accounting records, was destroyed. i (Click the icon to view additional information.) The beginning inventory numbers are as follows: (Click the icon to view beginning inventory numbers.) Requirement Determine the ending inventories of raw materials, work in process, and finished goods. Assume that Raw Materials Inventory contains only direct materials. ... Start by determining the ending inventory of raw materials by calculating the direct materials used. Unique Displays Calculation of Direct Materials Used For Current Year Direct labor Plus: Total manufacturing costs to account for Beginning work in process inventory Less: Ending work in process inventory Cost of goods manufactured