Answer the questions clearly and so that I can see how you have made it.Calculate questions from the assignment paper. -Direct materials stock -Work-in-progress stock -Finished, goods stock.
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A distraught employee, Guy Pirault-Manne, put a torch to a manufacturing plant on a blustery day,
26 February 2015. The resulting blaze completely destroyed the plant and its contents. Fortunately,
certain accounting records were kept in another building. They revealed the following for the period
from 1 January 2015 to 26 February 2015:
Direct materials purchased
Work in progress, 1 January 2015
Direct materials, 1 January 2015
Finished goods, 1 January 2015
Indirect manufacturing costs
Direct manufacturing labour
Gross margin percentage based on sales
Cost of goods available for sale
40% of conversion costs
The loss was fully covered by insurance. The insurance company wants to know the historical cost
of the stocks as one factor considered when negotiating a settlement.
Calculate the cost of: Finished, goods stock, 26 February 2015.
Calculate the cost of: Work-in-progress stock, 26 February 2015.
Calculate the cost of: Direct materials stock, 26 February 2015.
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