ICI Ltd produced soda ash. That product uses in differentindustries. The propert
ID: 2447687 • Letter: I
Question
ICI Ltd produced soda ash. That product uses in differentindustries. The property of this product is highly inflammable. Theposition of inventory at the beginning of year 2007 is asfollows:Inventories at Jan 1, 2007 consisted of: ICI Ltd produced soda ash.That product uses in different industries. The property of thisproduct is highly inflammable. The position of inventory at thebeginning of year 2007 is as follows:
Inventories at Jan 1, 2007 consisted of:
Particulars Rs
Finished goods 8,000
Work-In-Process 6,000
Materials 1,200
Total 15,200
A fire broke out in a factory at July 31, 2007 destroying allWork-in-Process inventories. After the fire, the inventories werevalued as follows:
Particulars Rs
Materials 4,000
Finished goods 7,000
In 2007 the amount of Gross profit is based on average GP to Saleratio of last 5 years 2002 to onward 2006. An analysis of pastfinancial statements reflected as follows:
Data for 7 months to 2007 is given as follows:
Particulars Rs.
Sales 20,000
Material Purchases 5,600
Direct Labor 6,000
FOH 3,000
Required: Calculate the Value of Work-In-Process destroyed by firein 2007
Calculate the Value Gross Profit in 2007
Particulars Rs
Finished goods 8,000
Work-In-Process 6,000
Materials 1,200
Total 15,200
A fire broke out in a factory at July 31, 2007 destroying allWork-in-Process inventories. After the fire, the inventories werevalued as follows:
Particulars Rs
Materials 4,000
Finished goods 7,000
In 2007 the amount of Gross profit is based on average GP to Saleratio of last 5 years 2002 to onward 2006. An analysis of pastfinancial statements reflected as follows:
Data for 7 months to 2007 is given as follows:
Particulars Rs.
Sales 20,000
Material Purchases 5,600
Direct Labor 6,000
FOH 3,000
Required: Calculate the Value of Work-In-Process destroyed by firein 2007
Calculate the Value Gross Profit in 2007