Splendid Displays designs and manufactures displays used in

Splendid Displays designs and manufactures displays used in mobile devices. Serious flooding throughout the region affected

Splendid Displays\' facilities. Inventory was completely ruined, and the company\'s computer system, including all accounting records, was destroyed

Start by determining the ending inventory of raw materials by calculating the direct materials used.

Splendid Displays Calculation of Direct Materials Used For Current Year Plus: Less:

Solution

Splendid Displays Calculation of Direct Material Used For Current Year Raw Material Inventory - Beginning        112,000.00 Add: Purchases        537,000.00 Raw Material Available for Use        649,000.00 Less: Raw Material Inventory , Ending (6)        (63,000.00) Direct Material Used (5)        586,000.00 Splendid Displays Calculation of Cost of Goods Manufactured For Current Year WIP - Beginning Inventory        218,000.00 Direct Material Used        586,000.00 Direct Labor        518,000.00 Manufacturing Overhead        190,000.00 Total Manufacturing Costs    1,512,000.00 Less: WIP - Ending Inventory (4)        346,000.00 Cost of Goods Manufactured (3)    1,166,000.00 Splendid Displays Calculation of Cost of Goods Sold For Current Year Finished Goods Inventory - Beginning        204,000.00 Add: Cost of Goods Manufactured    1,166,000.00 Cost of Goods Available for Sale    1,370,000.00 Less: Finished Goods Inventory - ending (2)        180,000.00 Cost of Goods Sold (1)    1,190,000.00 (1) Sales    1,700,000.00 Less: Gross Margin - 30% of $1,700,000        510,000.00 Cost of Goods Sold    1,190,000.00 (2) Cost of Goods Available for Sale    1,370,000.00 Less: .Cost of Goods Sold    1,190,000.00 Ending Finished Goods Inventory        180,000.00 (3) Cost of Goods Available for Sale    1,370,000.00 Less: Beginning Finished Goods Inventory        204,000.00 Cost of Goods Manufactured    1,166,000.00 (4) Total Manufacturing Costs    1,512,000.00 Less: Cost of Goods Manufactured    1,166,000.00 Ending WIP Inventory        346,000.00 (5) Total Manufacturing Costs    1,512,000.00 Less: Beginning WIP        218,000.00 Less: Direct Labor        518,000.00 Less: Manufacturing Overhead        190,000.00        926,000.00 Direct Material Used        586,000.00 (6) Calculation of Raw Material Inventory Beginning Raw Material inventory        112,000.00 Add: Purchases        537,000.00 Material Available for Use        649,000.00 Less: Direct Material Used        586,000.00 Ending Raw Material Inventory          63,000.00 Total Inventory Lost in Flood Raw Material Inventory          63,000.00 WIP Inventory        346,000.00 Finished Goods Inventory        180,000.00 Total Inventory        589,000.00