ACCT 505 Week 1 Case Study ACCT 505 Entire Course ACCT 505 Week 1-7 All Discussion Questions (Dervy) ACCT 505 Week 2 Quiz Job Order and Process Costing Systems ACCT 505 Week 3 Case Study II ACCT 505 Week 4 Midterm Exam ACCT 505 Week 5 Measuring Performance ACCT 505 Week 6 Quiz Segment Reporting and Relevant Costs for Decisions ACCT 505 Week 7 Capital Budgeting Course Project

1. TO Buy the Tutorial Visit Our Website
Top Switch Inc. designs and manufactures switches used in
telecommunications. Serious flooding throughout the state of Tennessee
affected Top Switch’s facilities. Inventory was completely ruined, and
the company’s computer system, including all accounting records, was
destroyed.
Before the unfortunate incident, recovery specialists cleaned the
buildings. The company controller is very nervous and anxious to
recover whatever records he can to support the insurance claim for the
destroyed inventory. After consulting with the cost accountant, they
decide to retrieve the previous year’s annual report for the beginning
inventory numbers. In addition, they also agreed that they need first
quarter cost data.
The cost accountant was working on the first quarter results before the
storm hit, and to his surprise, the report was still in his desk drawer.
After reviewing the data , the information shows the following
information: Material purchases were $ 325,000; Direct Labor was $
220,000. Further discussions between the controller and the cost
accountant revealed that sales were $ 1,350,000 and the gross margin
was 30% of sales. The cost accountant also discovered, while sifting
through the information, that cost of goods available for sale was $
1,020,000 at cost. While assessing the damage, the controller determined
that the prime costs were $ 545,000 up to the time of the damage and
that manufacturing overhead is 65% of conversion cost. The cost

2. accountant is not sure about all of this, but he decides to see what he can
do with the information.
The beginning inventory numbers are as follows:
Raw Materials, $ 41,000
Work in Process, $ 56,000
Finished Goods, $ 35,000
Required:
Determine the amount of cost in the Raw Materials, Work in Process,
and Finished Goods Inventory as of the date of the storm. ( Hint: You
may wish to reconstruct the various schedules and statements that would
have been affected by the company’s accounts during the period.)
Grading Rubric for Case Study I:
Category
Points
%
Description
Documentation &
Formatting
10
22%
Worksheet will be done in Excel and will contain formulas to receive
maximum credit
Organization and Cohesiveness

3. 15
33%
Calculations for all parts should be organized and correctly labeled.
Content
20
45%
A quality case study will have all required work completed and will be
correct.
Total
45
100%
A quality project will meet or exceed all of the above requirements.