Question: Power Switch Inc, had a flood distroy it's accounting records and inventroy,
Numbers Given:
1st quarter materials purchased: $476,000,
direct labor: $505,000, Manfacturing overhead:$245,000
Total Maufacturing costs to account for: $1,425,000,
Cost of goods available for sale: $1,340,000
Sales for the period: $1.7 million, gross profit of 30%,
Direct matrials: $113,000
Work In Process $229,000
Finished Goods:$154,000
Requirements
A) Determine ending inventories of Direct Materials, Work In Process, and Finished Good
B) Draft an insurance claim letter for the controller,seeking reimbursment for the damage to invemtory. PowerSwitch's insurance represenative is Gayr Ogleby, at Industrial Co., 1122 Main St, Hartford, Ct 06268
Policy # 3454340-23
Powerswitch address: 5 Research Triangle Way, Raliegh, NC, 27698