The work-in-process inventories of E INDUSTRIES were completely destroyed by fire on

June 1, 2008.

You were able to establish physical inventory figures as follows:

January 1, 2018 June 1, 2018

Raw materials P 55, 000 P 30,000

Work-in-process 50,000 __

Finished goods 70,000 60,000

Sales from January 1 to May 31 were P198,750. Purchases of raw materials were P50,000 and freight on purchases, P10,000.

Direct labor during the period was P40,000. To determined the value of the lost inventory, the insurance adjuster have agreed to use an average gross profit rate of 32.5% based on cost.

Assume that manufacturing overhead was 45% of direct labor cost.

Required:

Based on the above and the result of your audit, you are to determine:

1.Raw materials used

2.The total value of goods put in process

3.The value of goods manufactured and completed as of June 1, 2018

4.The work-in-process inventory destroyed as computed by the adjuster