What is the balance of direct materials on 02/28/21 before it was damaged by fire? A fire destroyed the plant and all its contents of FIREFLY Company's manufacturing facility.Fortunately, certain accounting records were kept in another building and revealed the followingfrom January 1 to February 28, 2021:Direct materials purchasedWork in process, Jan 1Direct materials, Jan 1Finished goods, Jan 1Indirect manufacturing costsP160,00034,00016,00030,00060% of conversioncostsP500,000180,000294,00020%450,000Sales RevenueDirect manufacturing laborPrime costsGross marginCost of goods available for saleWhat is the balance of Direct materials on 02/28/21 before it was damaged by fire?

Solution: Direct materials used = Prime costs - Direct labor = P294,000 - P180,000 = P114,000

Answered: A fire destroyed the plant and all its…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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