Question-5 Ananto Jalil Company specializes in producing fashion outfits. On July 31, 2017, an earth-quake touched down at its factory and general office. The inventories in the warehouse and the factory were completely destroyed as was the general office nearby. Next morning, through a careful search of the disaster site, however, Borsha, the company's controller, and Hero Alom, the cost accountant, were able to recover a small part of manufacturing cost data for the current month. What a horrible experience," sighed Borsha "And the worst part is that we may not have enough records to use in filing an insurance claim." "It was terrible," replied Hero Alom. However, I managed to recover some of the manufacturing cost data that I was working on yesterday afternoon. The data indicate that our direct labor cost in July totaled tk.250,000 and that we had purchased tk.365,000 of raw materials. Also, I recall that the amount of raw materials used for July was tk. 350,000. But I'm not sure this information will help. The rest of our records are blown away." BROADENING YOUR Well, not exactly, said Borsha. I was working on the year-to-date income statement when the earth-quake warning was announced. My recollection is that our sales in July were tk.1,240,000 and our gross profit ratio has been 40% of sales. Also, I can remember that our cost of goods available for sale was tk. 770,000 for July. Maybe we can work something out from this information! exclaimed Hero Alom. "My experience tells me that our manufacturing overhead is usually 60% of direct labor." "Hey, look what I just found, cried Hero Alom. "It's a copy of this June's balance sheet, and it shows that our inventories as of June 30 are Finished goods tk. 38,000, Work in process tk.25,000, and Raw materials tk. 19,000. Super, yelled Borsha. Let's go work something out." In order to fi le an insurance claim, Ananto Jalil Company needs to determine the amount of its inventories as of July 31, 2017, the date of the earth-quake touchdown. Instructions: With the class divided into groups, determine the amount of cost in the Raw Materials, Work in Process, and Finished Goods inventory accounts as of the date of the earth-quake touchdown. 4