Conrad, Inc. recently lost a portion of its records in an office fire. The following information...

Question

Question

Conrad, Inc. recently lost a portion of its records in an office fire. The following information...

Conrad, Inc. recently lost a portion of its records in an office fire. The following information was salvaged from the accounting records.


Cost of Goods Sold	$	69,500
Work-in-Process Inventory, Beginning		12,300
Work-in-Process Inventory, Ending		9,900
Selling and Administrative Expense		17,250
Finished Goods Inventory, Ending		17,475
Finished Goods Inventory, Beginning		?
Direct Materials Used		?
Factory Overhead Applied		12,900
Operating Income		14,495
Direct Materials Inventory, Beginning		11,405
Direct Materials Inventory, Ending		6,315
Cost of Goods Manufactured		64,230

Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The CFO of Conrad, Inc. has asked you to recalculate the following accounts and to report to him by the end of the day.

What is the amount of net sales?

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Answer:-

Net sales = 101,245

Purchased direct materials = 24490

Finished goods inventory (beginning)= 22745

As per the given information explanation is given below :

To calculate the cost of manufactured goods we need to use the following formula:

Cost of good manufactured= Beginning work in progress+ (beginning inventory direct material + purchase direct material - ending inventory direct material) + direct labor + manufactured overhead - ending work in progress

64230=12300+(11405 +purchase direct material -6315)+19350+12900-9900

Purchase direct material = 64230-12300-11405+6315-19350-12900+9900

Purchase direct material = 24490

As we know :

COGS= Beginning Inventory+Production during period−Ending Inventory

69500= Beginning Inventory + 64230-17475

Beginning Inventory = 69500+17475 -64230

Beginning Inventory= 22745

NET SALES = COST OF GOODS SOLD + OPERATING INCOME + SELLING AND ADMINISTRATIVE EXPENSES

NET SALES = 69500+14495+17250

NET SALES =101,245

* DIRECT LABOUE IS GIVEN IN THE QUESTION AS 1.5 OF Factory Overhead

HENCE IT WILL BE =12900*1.5 = 19350

Add a comment

Answer 2

Similar Homework Help Questions

Conrad, Inc. recently lost a portion of its records in an office fire. The following information...

Conrad, Inc. recently lost a portion of its records in an office fire. The following information was salvaged from the accounting records. 30 $66,500 Cost of Goods Sold 11,100 9,300 15,750 Work-in-Process Inventory, Beginning Work-in-Process Inventory, Ending Selling and Administrative Expense Finished Goods Inventory, Ending Finished Goods Inventory, Beginning Direct Materials Used Skipped 15,825 Factory Overhead Applied Operating Income Direct Materials Inventory, Beginning Direct Materials Inventory, Ending 12,300 14,165 11,135 6,105 61,410 Cost of Goods Manufactured Direct labor cost incurred...
Conrad, Inc. recently lost a portion of its records in an office fire. The following information...

Conrad, Inc. recently lost a portion of its records in an office fire. The following information was salvaged from the accounting records. Cost of Goods Sold $ 65,000 Work-in-Process Inventory, Beginning 10,500 Work-in-Process Inventory, Ending 9,000 Selling and Administrative Expense 15,000 Finished Goods Inventory, Ending 15,000 Finished Goods Inventory, Beginning ? Direct Materials Used ? Factory Overhead Applied 12,000 Operating Income 14,000 Direct Materials Inventory, Beginning 11,000 Direct Materials Inventory, Ending 6,000 Cost of Goods Manufactured 60,000 Direct labor cost...
Tierney Construction, Inc. recently lost a portion of its financial records in an office theft. The...

Tierney Construction, Inc. recently lost a portion of its financial records in an office theft. The following accounting information remained in the office files: Cost of goods sold: $87,500 Work in process inventory, January 1, 2016: 21,500 Work in process inventory, December 31, 2016: 17,000 Selling and Administrative Expenses: 20,000 Net Income: 35,000 Factory overhead: 21,500 Direct materials inventory, January 1, 2016: 28,000 Direct materials inventory, December 31, 2016: 15,250 Cost of goods manufactured: 106,500 Finished goods inventory, January 1,...

Tierney Construction, Inc. recently lost a portion of its financial records in an office theft. The...

Tierney Construction, Inc. recently lost a portion of its financial records in an office theft. The following accounting information remained in the office files: Cost of goods sold Work in process inventory, January 1, 2016 Work in process inventory, December 31, 2016 Selling and Administrative Expenses Net Income Factory overhead Direct materials inventory, January 1, 2016 Direct materials inventory, December 31, 2016 Cost of goods manufactured Finished goods inventory, January 1, 2016 $ 83,750 20,000 15,750 18,000 32,500 20,750 27,000...
Tierney Construction, Inc. recently lost a portion of its financial records in an office theft. The...

Tierney Construction, Inc. recently lost a portion of its financial records in an office theft. The following accounting information remained in the office files: Cost of goods sold Work in process inventory, January 1, 2016 Work in process inventory, December 31, 2016 Selling and Administrative Expenses Net Income Factory overhead Direct materials inventory, January 1, 2016 Direct materials inventory, December 31, 2016 Cost of goods manufactured Finished goods inventory, January 1, 2016 $80,750 18,800 14,750 16,400 30,500 20,150 26,200 14,125...
Stephenson Company's computer system recently crashed, erasing much of the company's financial data. The following accounting...

Stephenson Company's computer system recently crashed, erasing much of the company's financial data. The following accounting information was discovered soon afterwards on the CFO's back-up computer data. $400,000 35,000 46,000 59,000 18,000 Cost of Goods Sold Work-in-Process Inventory, Beginning Work-in-Process Inventory, Ending Selling and Administrative Expense Finished Goods Inventory, Ending Finished Goods Inventory, Beginning Direct Materials Purchased Factory Overhead Applied Operating Income Direct Materials Inventory, Beginning Direct Materials Inventory, Ending Cost of Goods Manufactured Direct Labor 193,000 142,000 33,000 24,000...

TB MC Qu. 3-47 Stephenson Company's computer system recently cras... Stephenson Company's computer system recently crashed,...

TB MC Qu. 3-47 Stephenson Company's computer system recently cras... Stephenson Company's computer system recently crashed, erasing much of the company's financial data. The following accounting information was discovered soon afterwards on the CFO's back-up computer data. Cost of Goods Sold $ 387,000 Work-in-Process Inventory, Beginning 31,750 Work-in-Process Inventory, Ending 42,100 Selling and Administrative Expense 53,150 Finished Goods Inventory, Ending 16,050 Finished Goods Inventory, Beginning ? Direct Materials Purchased 178,700 Factory Overhead Applied 122,500 Operating Income 25,850 Direct Materials Inventory,...
The following information was taken from the accounting records of Elliott Manufacturing Corp. Unfortunately, some of...

The following information was taken from the accounting records of Elliott Manufacturing Corp. Unfortunately, some of the data were destroyed by a computer malfunction. Sales Revenue $ 65,500 Finished Goods Inventory, Beginning 11,500 Finished Goods Inventory, Ending 8,000 Cost of Goods Sold ? Gross Margin 31,500 Direct Materials Used 11,500 Selling and Administrative Expense ? Operating Income 16,000 Work-in-Process Inventory, Beginning ? Work-in-Process Inventory, Ending 6,500 Direct Labor Used 9,750 Factory Overhead 13,000 Total Manufacturing Cost ? Cost of Goods...
Sineath Industries had a fire and some of its accounting records were destroyed. Available information is...

Sineath Industries had a fire and some of its accounting records were destroyed. Available information is presented below for the year ended December 31, 2011 Materials inventory, December 31, 2011 $15,000 Direct materials purchased 28,000 Direct materials used 22.900 Cost of goods manufactured 135,000 Additional information is as follows: Factory overhead is 150% of direct labor cost. Finished goods inventory decreased by $18,000 during the year. Work in process inventory increased by $12,000 during the year, Calculate: a) materials inventory,...

Given the following information for the Bedrock Drive-in, Inc for the year ending 12/31/20xX, prepare a...

Given the following information for the Bedrock Drive-in, Inc for the year ending 12/31/20xX, prepare a Statement of Cost of Goods Manufactured, in proper form. 1. INVENTORIES Beginning Ending Raw Materials Work in process Finished Goods $10,900 14,800 16,100 $11,400 12,900 19,300 OTHER DATA Cost of goods sold Direct labor Factory overhead costs $226,900 90,000 79,500

Conrad, Inc. recently lost a portion of its records in an office fire. The following information...

Homework Answers

Add Answer to:
Conrad, Inc. recently lost a portion of its records in an office fire. The following information...

Post as a guest

Earn Coins