PROBLEM 4 On June 30, 2021, a flash flood damaged the warehouse and…

Question Answered step-by-step PROBLEM 4 On June 30, 2021, a flash flood damaged the warehouse and… PROBLEM 4On June 30, 2021, a flash flood damaged the warehouse and factory of RAINY Corporation, completely destroying the work-in-process inventory. There was no damage to either the raw materials or finished goods inventories. A physical inventory taken after the flood revealed the following valuations:Raw materials ————————————–   62,000Finished goods ————————————- 119,000The inventory on January 1, 2021 consisted of the following:Raw materials ————————————–   30,000Work-in-process ———————————– 100,000Finished goods ————————————- 140,000A review of the books and records disclosed that the gross profit margin historically approximated 25% of sales. The sales for the first six months of 2021 were P340,000. Raw materials purchases were P115,000. Direct labor costs for this period were P80,000, and manufacturing overhead has historically been applied at 50% of direct labor. REQUIRED:Q1. What is the total cost of goods available for sale during June 2021? Q2. What is the cost of the work-in-process inventory destroyed by the flood? Accounting Business Financial Accounting ACCOUNTING 4624 Share QuestionEmailCopy link Comments (0)