2 The Elegance Manufacturing Company, in its statement of financial position as of December 31, 2019, has an inventory of P1,760,000 which consists of: Direct materials Direct materials purchases in transit, FOB destination Direct materials purchases in transit, FOB shipping point Prepaid insurance on inventory Work in process Finished goods Goods shipped on consignment, at selling price with 20% profit on sales P550,000 120,000 90,000 20,000 380,000 450,000 150,000 What is the cost of inventory to be shown in the statement of financial position of Elegance as of December 31, 2019?
2 The Elegance Manufacturing Company, in its statement of financial position as of December 31, 2019, has an inventory of P1,760,000 which consists of: Direct materials Direct materials purchases in transit, FOB destination Direct materials purchases in transit, FOB shipping point Prepaid insurance on inventory Work in process Finished goods Goods shipped on consignment, at selling price with 20% profit on sales P550,000 120,000 90,000 20,000 380,000 450,000 150,000 What is the cost of inventory to be shown in the statement of financial position of Elegance as of December 31, 2019?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2 The Elegance Manufacturing Company, in its statement of financial
position as of December 31, 2019, has an inventory of P1,760,000
which consists of:
Direct materials
Direct materials purchases in transit, FOB
destination
Direct materials purchases in transit, FOB shipping
point
Prepaid insurance on inventory
Work in process
Finished goods
Goods shipped on consignment, at selling price with
20% profit on sales
P550,000
120,000
90,000
20,000
380,000
450,000
150,000
What is the cost of inventory to be shown in the statement of
financial position of Elegance as of December 31, 2019?
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