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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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