In 2025, for the second time in two years, Costanza Corporation was the victim of a serious data breach. This time a foreign crime syndicate was able to break into Costanza's I.T. system and compromise its ledger system.
The crime was perpetrated by sending a fraudulent email message to one of Costanza's accountants, who had posted his company email address along with personal information on a social media site. The email message contained a link to the site of a fictitious company that sells lines of clothing, promising to make accountants look cool. When the employee clicked on the phishing link, malware was immediately distributed throughout Costanza's corporate I.T. system, eliminating its general ledger. The hacker also included ransomware, demanding the payment of ten million dollars from Costanza in order to restore their ledger information.
Costanza Corporation is determined not to pay the ransom and once again retained the services of famed forensic accountant, Pacioli Columbo, CPA to recreate their ledger.
Ledger information from the 2024 ledger was not compromised and selected account ending balance information is provided below:
Additional information:
No indirect materials used during 2025.
Costanza maintains a gross profit percentage of 30%.
Below are selected journal entries for activities occurring during the year 2025:
Required:
a. Based upon the above provided information, determine the 2025 ending balances in Raw Materials, Work-In-Process, and Finished Goods Inventories.
b. What was Costanza's Cost of Goods Sold for 2025?

Question

In 2025, for the second time in two years, Costanza Corporation was the victim of a serious data breach. This time a foreign crime syndicate was able to break into Costanza's I.T. system and compromise its ledger system.
The crime was perpetrated by sending a fraudulent email message to one of Costanza's accountants, who had posted his company email address along with personal information on a social media site. The email message contained a link to the site of a fictitious company that sells lines of clothing, promising to make accountants look cool. When the employee clicked on the phishing link, malware was immediately distributed throughout Costanza's corporate I.T. system, eliminating its general ledger. The hacker also included ransomware, demanding the payment of ten million dollars from Costanza in order to restore their ledger information.
Costanza Corporation is determined not to pay the ransom and once again retained the services of famed forensic accountant, Pacioli Columbo, CPA to recreate their ledger.
Ledger information from the 2024 ledger was not compromised and selected account ending balance information is provided below:
  Additional information:
No indirect materials used during 2025.
Costanza maintains a gross profit percentage of 30%.
Below are selected journal entries for activities occurring during the year 2025:
  Required:
a. Based upon the above provided information, determine the 2025 ending balances in Raw Materials, Work-In-Process, and Finished Goods Inventories.
b. What was Costanza's Cost of Goods Sold for 2025?

Quizplus · Accepted Answer

The Answer of In 2025, for the second time in two years, Costanza Corporation was the victim of a serious data breach. This time a foreign crime syndicate was able to break into Costanza's I.T. system and compromise its ledger system.
The crime was perpetrated by sending a fraudulent email message to one of Costanza's accountants, who had posted his company email address along with personal information on a social media site. The email message contained a link to the site of a fictitious company that sells lines of clothing, promising to make accountants look cool. When the employee clicked on the phishing link, malware was immediately distributed throughout Costanza's corporate I.T. system, eliminating its general ledger. The hacker also included ransomware, demanding the payment of ten million dollars from Costanza in order to restore their ledger information.
Costanza Corporation is determined not to pay the ransom and once again retained the services of famed forensic accountant, Pacioli Columbo, CPA to recreate their ledger.
Ledger information from the 2024 ledger was not compromised and selected account ending balance information is provided below:
  Additional information:
No indirect materials used during 2025.
Costanza maintains a gross profit percentage of 30%.
Below are selected journal entries for activities occurring during the year 2025:
  Required:
a. Based upon the above provided information, determine the 2025 ending balances in Raw Materials, Work-In-Process, and Finished Goods Inventories.
b. What was Costanza's Cost of Goods Sold for 2025?

In 2025, for the Second Time in Two Years, Costanza