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Choose and explain.  a. P4,170,000 b. P4,270,000

Choose and explain.  a. P4,170,000 b. P4,270,000

FINANCIAL ACCOUNTING
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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Choose and explain. 

a. P4,170,000

b. P4,270,000

Luminous Company provided the following information at current year-end: Finished goods in storeroom, at cost including overhead of P400,000 Finished good in transit, including freight charge of P20,000, FOB shipping point Finished goods held by salesmen, at selling price, cost P100,000 Goods in process, at cost of materials and direct labor 2,000,000 250,000 140,000 720,000 Materials 1,000,000 Materials in transit, FOB destination Defective materials returned to suppliers for replacement Shipping supplies iGasoline and oil for testing finished goods Machine lubricants 50,000 100,000 20,000 110,000 60,000 Required: Compute cost of inventory at current year-end: --- --- --- --- - - --- --.
Transcribed Image Text:Luminous Company provided the following information at current year-end: Finished goods in storeroom, at cost including overhead of P400,000 Finished good in transit, including freight charge of P20,000, FOB shipping point Finished goods held by salesmen, at selling price, cost P100,000 Goods in process, at cost of materials and direct labor 2,000,000 250,000 140,000 720,000 Materials 1,000,000 Materials in transit, FOB destination Defective materials returned to suppliers for replacement Shipping supplies iGasoline and oil for testing finished goods Machine lubricants 50,000 100,000 20,000 110,000 60,000 Required: Compute cost of inventory at current year-end: --- --- --- --- - - --- --.
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