Crawley Pty Ltd manufactures various computing parts and accessories On 28 February 2015, at about 1
Crawley Pty Ltd manufactures various computing parts and accessories On 28 February 2015, at about 12:01am, a distraught employee, Arson Crazy, put a torch to a manufacturing plant The resulting blaze completely destroyed the plant and its contents Fortunately, some of the accounting records were kept in another building The following data (in thousands) for the fiscal year survived:
Cost of goods sold $32,000
Purchases of direct materials 8,000
Factory overhead 13,000
Sales commissions 2,000
Direct labour 4,000
Direct materials used 7,600
Finished goods inventory – beginning 7,800
Gross profit 12,000
Account payable – beginning 1,700
Account payable – ending 1,500
Work-in-process – beginning 1,300
Work-in-process – ending 800
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, not historical cost)
REQUIRED: [Please show your workings/computations clearly] Calculate the ending inventory of finished goods on 28 February for the above insurance claim