CASE 2-31 Inventory Computations from Incomplete DataWhile snoozing at the controls of his Pepper Six airplane, Dunse P. Sluggard leaned heavily against the door; suddenly, the door flew open and a startled Dunse tumbled out. As he parachuted to the ground, Dunse watched helplessly as the empty plane smashed into Operex Products’ plant and administrative offices.“The insurance company will never believe this,” cried Mercedes Juliet, the company’s controller, as she watched the ensuing fire burn the building to the ground. “The entire company is wiped out!”“There’s no reason to even contact the insurance agent,” replied Ford Romero, the company’s operations manager. “We can’t file a claim without records, and all we have left is this copy of last year’s annual report. It shows that raw materials at the beginning of this year (January 1) totaled $30,000, work in process totaled $50,000, and finished goods totaled $90,000. But what we need is a record of these inventories as of today, and our records are up in smoke.”
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