Question

Problem 3.35A On November 30, 2020, there was a fire in the factory of Able Manufacturing Limited, where you work as the controller. The work in process inventory was completely destroyed, but both the materials and finished goods inventories were undamaged. Able uses normal job-order costing and its fiscal year end is December 31. Selected information for the periods ended October 31, 2020, and November 30, 2020, follows: November 30, 2020 $73,650 October 31, 2020 $79,350 58,975 59,500 573,500 18,360 130,200 129,500 Supplies (including both direct and indirect materials) Work in process inventory Finished goods inventory Cost of goods sold (year to date) Accounts payable (relates to materials purchased only) Manufacturing overhead incurred (year to date) Manufacturing overhead applied Other information for November 2020: Cash payments to suppliers Payroll (including $15,570 indirect) Indirect materials used Over-applied overhead (during November only) 63,600 663,300 53,770 172,300 $59,500 84,500 5,840 2,800 Calculate the normal cost of the work in process inventory lost during the fire. Cost of the work in process inventory

Answer 1

Direct Materials Used
Accounts payable an on Nov 30, 2020	$    53,770
Add: Payment made to suppliers	$    59,500
Less: Accounts payable an on Oct 31, 2020	$   -18,360
Supplies Purchased during November	$    94,910
Add: Supplies as on Oct 31, 2020	$    79,350
Less: Supplies as on Nov 30, 2020	$   -73,650
Supplies Consumed during November	$ 1,00,610
Less: Indirect Materials Used	$     -5,840
Direct Materials Used	$    94,770
Manufacturing Overhead Applied
Manufacturing Overhead Upto Nov 30, 2020	$ 1,72,300
Less: Manufacturing Overhead Upto Oct 31, 2020	$-1,30,200
Manufacturing Overhead incurred during Nov	$    42,100
Add: Overhead Overapplied	$      2,800
Manufacturing Overhead Applied during Nov	$    44,900
Cost of Goods sold
Direct Materials	$    94,770
Direct labor (84500-15570)	$    68,930
Manufacturing Overhead Applied	$    44,900
Add: WIP Inventory as on Oct 31, 2020	$    58,975
Less: WIP Inventory as on Nov 30, 2020	$           -
Cost of Goods Manufactured during November	$ 2,67,575
Add: Finished Goods inventory Oct 31, 2020	$    59,500
Less: Finished Goods inventory Nov 30, 2020	$   -63,600
Cost of Goods sold during November	$ 2,63,475
Cost of Work in process inventory Lost during Fire
Cost of Goods sold during November	$ 2,63,475
Add: Cost of Goods sold upto Oct 31, 2020	$ 5,73,500
Less: Cost of goods sold upto Nov 30, 2020	$-6,63,300
Cost of Work in process inventory Lost during Fire	$ 1,73,675