A Careless Accountant Splattered Spaghetti Sauce on Kite Company's Balance

question 20

Essay

A careless accountant splattered spaghetti sauce on Kite Company's balance sheet. The balance sheet with its missing amounts is provided below: Kite Company's working capital is $138,000.
Required:
Compute the missing amounts. Record your answers in the following table:

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Definitions:

Conversion Costs

Refers to expenditures (labor costs and overhead) related to the transformation of materials into finished products.

First-in, First-out Method

An inventory valuation method assuming that the first goods purchased are the first goods sold, usually used to calculate cost of goods sold.

Conversion Costs

The total cost of converting raw materials into finished goods, including both direct labor and manufacturing overhead.

Work in Process

Inventory that is in the production process and is not yet completed.