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Jackal Company

A fire at Jackal Company destroyed goods in process inventory on December 31, 2019. An inventory was taken after the fire which showed finished goods increased to $6 million while goods in process was wiped out and raw materials decreased to $1.7 million. The document provides financial information about Jackal Company for the year including sales, purchases, expenses, and inventory amounts to calculate costs.

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Ann lou
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64 views3 pages

Jackal Company

A fire at Jackal Company destroyed goods in process inventory on December 31, 2019. An inventory was taken after the fire which showed finished goods increased to $6 million while goods in process was wiped out and raw materials decreased to $1.7 million. The document provides financial information about Jackal Company for the year including sales, purchases, expenses, and inventory amounts to calculate costs.

Uploaded by

Ann lou
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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On December 31, 2019, Jackal Company had a fire which destroyed the goods in

process inventory. A physical inventory was taken after the fire

December January 1
31

Finished goods 4,500,000 6,000,000

Goods in process - 4,300,000

Raw materials 2,000,000 1,700,000

Factory supplies 400,000 500,000

During the year, the entity reported sales P20,000,000, purchases P3,800,000, freight
P200,000, direct labor P5,000,000 and manufacturing overhead at 60% of direct labor.
The average gross profit is 30% on sales.

What is the cost of raw materials used?

5,700,000

3,800,000

3,700,000

3,600,000
What is the total manufacturing cost?

13,000,000

! 11,700,000

11,800,000

11,600,000

What is the cost of goods sold?

14,000,000

12,000,000

13,000,000

16,000,000

What is the cost of goods in process inventory destroyed by fire?

2,500,000
3,500,000

3,800,000

1,500,000

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