Inventory Control for Cumberland Metals

Inventory Control for Cumberland Metals SECTION I: BACKGROUND AND report OF THE PROBLEM In the event of a combustion, a smart set mustiness be able to account for and document its proceed know level of material on hand, march in encourage and the amount of finished goods on hand at the beat of the fire in order to file an insurance claim. If not, the connection would stand to lose large amounts of inventory and assets that are invested in these goods. Due to a recent accidental fire, Cumberland Metals Company has woolly not only its entire manufacturing plant but in any case its entire administrative office and records department. Fortunately for the company, when the fire skint out certain employees were able to take with them important pecuniary documentation that could be used to re channelize the companys last standing levels of inventory. When the fire broke out, these employees fled the building as abstain as possible while at the same clip carrying with them the last items that they were working on.

The following list of breeding has been salvaged from the fire of Cumberland Metals Corporation: ?Direct labor costs for this category numbers $180,000 ? refreshing untoughened material purchases total $290,000 ?Sales to date total $1,200,000 ?Gross margin rate for the company is 40% of gross sales ?Goods available for sale to customers totals $810,000 at cost ?Prime cost for the company is $410,000 ?Manufacturing overhead is 70% of conversion cost ?Beginning raw materials for the year were $18,000 ?Beginning work in progress for the year was $65,000 ?Beginning finished goods for the year was $45,000 Based on this information the company needs to determine the amount of cost in its inventories on the date of the fire. The company will need to calculate the current cost of raw materials, the current cost of work in progress and the current cost of finished goods on the date of the fire. In doing this activity the company also considers wholly material used in production to be direct... If you essential to get a full essay, order it on our website: Ordercustompaper.com

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