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TEAMWORK IN ACTION (LO3 -CC6, 7; LO4 CC10; LO5 -CC14; LO7-CC18 In an attempt to conceal a theft of funds, snake N. Grass, controller of

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TEAMWORK IN ACTION (LO3 -CC6, 7; LO4 CC10; LO5 -CC14; LO7-CC18 In an attempt to conceal a theft of funds, snake N. Grass, controller of Bucolic Products of the companii ledger, as shown below: Manufacturing overhead Raw Materials Bal., 6/1 Actual costs 8,000 for June Work in Process Accounts Payable Bal., 6/1 7,200 Bal., 6/30 Finished Goods Cost of Goods Sold Bal. 6/30 21,000 Mr. Grass to justice, the company must reconstruct its activities for June. Your team assigned to perform the task of reconstruction. After interviewing selected employees and sifting charred you have determined the following additional information: materialarly a. According to the company's treasurer the accounts payable are for purchases of raw the beginning of June. The company's bank has provided photocopies of all cheques that bank during June. These photocopies show that payments to suppliers during June (All materials used during the month were direct materials.) b. The production superintendent states that manufacturing overhead cost is applied to jobs basis of direct labour-hours. However, he does not remember the rate currently Cost sheets kept in the production superintendent's office show that only one job wasinpo June 30, at the time of the explosion. The job had been charged with s6,600 in materials direct labour-hours per hour worked on the job. d. kept in the finished goods warehouse all goods transferred in from the This log shows that the cost of goods transferred into the finished goods warehouse fro factory June e. The company's May 31 balance sheet indicates that the finished goods inventory totalo beginning of June. f piece of the payroll ledger, found after sifting through piles of smoking debris that 11,500 direct labour-hours recorded for June. The company's resources human department has verified that, as a result of a union contract, all factory employees earn rate. g. The production superintendent states that there was no under. or overapplied overhead manufacturing overhead account at May 31

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