Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Falcon Company does not maintain backup documents for its computer files. In June, some of the current data were lost, and you have been

The Falcon Company does not maintain backup documents for its computer files. In June, some of the current data were lost, and you have been asked to help reconstruct the data. The following beginning balances on June 1 are known: Direct Materials Inventory $ 13,000 Work-in-Process Inventory 5,500 Finished Goods Inventory 14,100 Manufacturing Overhead Control 26,500 Accounts Payable 7,000 Reviewing old documents and interviewing selected employees have generated the following additional information: The production superintendent's job cost sheets indicated that materials of $3,600 were included in the June 30 Work-in-Process Inventory. Also, 400 direct labor-hours had been paid at $5.00 per hour for the jobs in process on June 30. The Accounts Payable account is only for direct material purchases. The clerk remembers clearly that the balance in the Accounts Payable on June 30 was $9,000. An analysis of canceled checks indicated payments of $50,000 were made to suppliers during June. Payroll records indicate that 6,200 direct labor-hours were recorded for June. It was verified that there were no variations in pay rates among employees during June. Records at the warehouse indicate that the Finished Goods Inventory totaled $18,000 on June 30. Another record kept manually indicates that the Cost of Goods Sold in June totaled $94,000. The predetermined overhead rate was based on an estimated 70,000 direct labor-hours for the year and an estimated $280,000 in manufacturing overhead costs. What is the ending balance in the Work-in-Process Inventory on June 30?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managing The Audit Function A Corporate Audit Department Procedures Guide

Authors: Michael P. Cangemi, Tommie W. Singleton

3rd Edition

0471281190, 978-0471281191

More Books

Students also viewed these Accounting questions

Question

Identify three types of physicians and their roles in health care.

Answered: 1 week ago

Question

Compare the types of managed care organizations (MCOs).

Answered: 1 week ago