{"id":14037,"date":"2020-11-24T09:07:57","date_gmt":"2020-11-24T09:07:57","guid":{"rendered":"http:\/\/onlineclassesguru.com\/index.php\/2020\/11\/24\/acme-companys-facilities-were-damaged-by-a-fire\/"},"modified":"2020-11-24T09:07:57","modified_gmt":"2020-11-24T09:07:57","slug":"acme-companys-facilities-were-damaged-by-a-fire","status":"publish","type":"post","link":"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/24\/acme-companys-facilities-were-damaged-by-a-fire\/","title":{"rendered":"Acme Company\u2019s facilities were damaged by a fire"},"content":{"rendered":"<style type=\"text\/css\"><\/style><p>A55 19 W Problem 1<br \/>\nDecember 31, 2012, Acme Company\u2019s facilities were damaged by a fire, destroying the company\u2019s<br \/>\ndirect material, w.i.p., and f. goods. Information that was \u2018salvaged\u2019 revealed the following:<br \/>\n1. Beginning inventory, January 1, 2012: DM, $64,000; WIP, $136,000; FG, $60,000.<br \/>\n2. Key ratios for the year: Gross profit, 20% of sales; Prime costs, 70% of manufacturing costs;<br \/>\nFactory overhead, 40% of conversion costs; Ending WIP is always 10% of the<br \/>\nmanufacturing costs.<br \/>\n3. All costs are incurred evenly in the manufacturing process.<br \/>\n4. Actual operating data for the year:<br \/>\nSales, $1,800,000; Direct material purchases, $640,000; Direct labour incurred, $720,000<br \/>\nRequired:<br \/>\n(a) Construct a cost of goods manufactured schedule based on the above information.<br \/>\n(b) Calculate the total cost of inventory lost, and identify each category where possible as at December<br \/>\n31, 2012. (i.e. Direct material, WIP, and finished goods inventory.)<br \/>\nProblem 2<br \/>\nThe following income statement for 2015 was prepared by an inexperienced accountant:<br \/>\nSales (net) $675,000<br \/>\nLess: Operating expenses<br \/>\nRaw materials purchased $200,000<br \/>\nDirect labour costs $160,000<br \/>\nAdvertising expense $ 75,000<br \/>\nSelling and admin salaries $ 70,000<br \/>\nRent on factory facilities 35 60,000<br \/>\nDepreciation \u2013 Sales equipment $ 50,000<br \/>\nDepreciation \u2013 Factory equipment $ 35,000<br \/>\nIndirect labour cost $ 20,000<br \/>\nUtilities expense $ 10,000<br \/>\nInsurance expense LiQQQ $5,000<br \/>\nNet loss 5 (10,000)<br \/>\nThe company president is concerned about the statement\u2019s accuracy. Additional information is as<br \/>\nfollows:<br \/>\nInventory balances Beam \u2018 g of year End of year<br \/>\nRM $19,500 $30,000<br \/>\nWIP $25,000 $21,000<br \/>\nFG $40,000 $64,000<br \/>\nOnly 60% of the utilities expense and 70% of the insurance expense apply to factory operations, The<br \/>\nrest apply to selling and administration operations.<br \/>\nRequired: Correct the income statement, and prepare a cost of goods manufactured statement for the<br \/>\nyear. v<\/p>\n<p>&nbsp;<\/p>\n<p><center><a href=\"http:\/\/onlineclassesguru.com\/orders\/ordernow\"><img decoding=\"async\" src=\"https:\/\/encrypted-tbn0.gstatic.com\/images?q=tbn:ANd9GcTyj99p60XCLyLk1htB7-1neRt8-2QdnenNlQ&usqp=CAU\"target=\"_http:\/\/onlineclassesguru.com\/orders\/ordernow\"\/><\/center><p>","protected":false},"excerpt":{"rendered":"<p>A55 19 W Problem 1 December 31, 2012, Acme Company\u2019s facilities were damaged by a fire, destroying the company\u2019s direct material, w.i.p., and f. goods. Information that was \u2018salvaged\u2019 revealed the following: 1. Beginning inventory, January 1, 2012: DM, $64,000; WIP, $136,000; FG, $60,000. 2. Key ratios for the year: Gross profit, 20% of sales;&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-14037","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Acme Company\u2019s facilities were damaged by a fire - onlineclassesguru<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/onlineclassesguru.com\/index.php\/2020\/11\/24\/acme-companys-facilities-were-damaged-by-a-fire\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Acme Company\u2019s facilities were damaged by a fire - onlineclassesguru\" \/>\n<meta property=\"og:description\" content=\"A55 19 W Problem 1 December 31, 2012, Acme Company\u2019s facilities were damaged by a fire, destroying the company\u2019s direct material, w.i.p., and f. goods. Information that was \u2018salvaged\u2019 revealed the following: 1. Beginning inventory, January 1, 2012: DM, $64,000; WIP, $136,000; FG, $60,000. 2. 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Information that was \u2018salvaged\u2019 revealed the following: 1. Beginning inventory, January 1, 2012: DM, $64,000; WIP, $136,000; FG, $60,000. 2. Key ratios for the year: Gross profit, 20% of sales;...","og_url":"http:\/\/onlineclassesguru.com\/index.php\/2020\/11\/24\/acme-companys-facilities-were-damaged-by-a-fire\/","og_site_name":"onlineclassesguru","article_published_time":"2020-11-24T09:07:57+00:00","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin_admin","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebSite","@id":"https:\/\/onlineclassesguru.com\/#website","url":"https:\/\/onlineclassesguru.com\/","name":"onlineclassesguru","description":"Cheap Professional coursework and reaction papers help","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/onlineclassesguru.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"WebPage","@id":"http:\/\/onlineclassesguru.com\/index.php\/2020\/11\/24\/acme-companys-facilities-were-damaged-by-a-fire\/#webpage","url":"http:\/\/onlineclassesguru.com\/index.php\/2020\/11\/24\/acme-companys-facilities-were-damaged-by-a-fire\/","name":"Acme Company\u2019s facilities were damaged by a fire - onlineclassesguru","isPartOf":{"@id":"https:\/\/onlineclassesguru.com\/#website"},"datePublished":"2020-11-24T09:07:57+00:00","dateModified":"2020-11-24T09:07:57+00:00","author":{"@id":"https:\/\/onlineclassesguru.com\/#\/schema\/person\/1831fa4d28e47b468621cf27932f5742"},"breadcrumb":{"@id":"http:\/\/onlineclassesguru.com\/index.php\/2020\/11\/24\/acme-companys-facilities-were-damaged-by-a-fire\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["http:\/\/onlineclassesguru.com\/index.php\/2020\/11\/24\/acme-companys-facilities-were-damaged-by-a-fire\/"]}]},{"@type":"BreadcrumbList","@id":"http:\/\/onlineclassesguru.com\/index.php\/2020\/11\/24\/acme-companys-facilities-were-damaged-by-a-fire\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/onlineclassesguru.com\/"},{"@type":"ListItem","position":2,"name":"Acme Company\u2019s facilities were damaged by a fire"}]},{"@type":"Person","@id":"https:\/\/onlineclassesguru.com\/#\/schema\/person\/1831fa4d28e47b468621cf27932f5742","name":"admin_admin","image":{"@type":"ImageObject","@id":"https:\/\/onlineclassesguru.com\/#personlogo","inLanguage":"en-US","url":"https:\/\/secure.gravatar.com\/avatar\/429c8d043f7a770af242b0031e8b9f2b?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/429c8d043f7a770af242b0031e8b9f2b?s=96&d=mm&r=g","caption":"admin_admin"},"url":"https:\/\/onlineclassesguru.com\/index.php\/author\/admin_admin\/"}]}},"_links":{"self":[{"href":"https:\/\/onlineclassesguru.com\/index.php\/wp-json\/wp\/v2\/posts\/14037"}],"collection":[{"href":"https:\/\/onlineclassesguru.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/onlineclassesguru.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/onlineclassesguru.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/onlineclassesguru.com\/index.php\/wp-json\/wp\/v2\/comments?post=14037"}],"version-history":[{"count":0,"href":"https:\/\/onlineclassesguru.com\/index.php\/wp-json\/wp\/v2\/posts\/14037\/revisions"}],"wp:attachment":[{"href":"https:\/\/onlineclassesguru.com\/index.php\/wp-json\/wp\/v2\/media?parent=14037"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/onlineclassesguru.com\/index.php\/wp-json\/wp\/v2\/categories?post=14037"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/onlineclassesguru.com\/index.php\/wp-json\/wp\/v2\/tags?post=14037"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}