Compute for the correct amount of inventory to be presented in CCC’s statement of financial position.
PROBLEM 3: CCC Company included the following items under inventories:
Goods out on consignment at another
company’s store P1,000,000
Goods held on consignment at the Luanda’s
stores 750,000
Goods purchased FOB seller that are in transit 300,000
Office supplies not yet used 30,000
Goods purchased FOB buyer that are in transit 200,000
Goods sold where large returns are predictable 60,000
Goods sold FOB shipping point that are in transit 400,000
Freight charges on goods purchased 30,000
Interest cost incurred for inventories that are
routinely manufactured 50,000
Costs incurred to advertise goods held for sale 10,000
Freight paid for transporting goods to consignees 30,000
Materials on hand not yet placed into
production 500,000
Raw materials on which the company has
started production but not yet completed 450,000
Unused machine lubricants 30,000
Costs identified with units completed but not yet
sold 330,000
Temporary investment in stocks and bonds that
will be resold in the near future 400,000
Goods sold on installment basis due in three
equal annual payments 220,000
Goods sold by Luanda with a right to repurchase
the same within six months 155,000
- Compute for the correct amount of inventory to be presented in CCC’s statement of financial position.
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