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

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

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. P4,270,000

b. P4,170,000

 

 

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