Response to the following problem:
Fire Loss, computing inventory costs a distraught employee, Fang W. Arson, put a torch to a manufacturing plant on a blustery February 26. The resulting blaze destroyed the plant and its contents. Fortunately, certain accounting records were kept in another building. They reveal the following for the period from
The loss is fully covered by insurance. The insurance company wants to know the historical cost of the inventories as a basis for negotiating a settlement although the settlement is actually to be based on replacement cost, not historical cost
Calculate the cost of:
1. Finished goods inventory, 2/26/2009
2. Work-in-process inventory, 2/26/2009
3. Direct materials inventory,2/26/2009 .