Crimson reported inventory amounting to P1,727,500 in its December 31, 2022 statement of financial position. Upon verification of the inventory ledger, the following compositions were found: Item 1 Raw materials inventory in the warehouse 2 Office supplies 3 Work in process inventory 4 Shipping cartons 5 Newly finished goods inventories in the factory, including goods specifically segregated per sales contract (considered sold), P50,000 6 Finished goods out on approval, at cost 7 Advances to supplier for materials ordered 8 Damaged and unsalable finished goods, at cost 9 Merchandise items in the showroom at 50% on cost 10 Prepaid insurance on inventories 11 Goods held on consignment, at sales price (cost is P37,500) 12 Merchandise in the hand of the agents including 40% profit on sales 13 Merchandise inventories in transit to customers, FOB Destination at cost 14 Raw materials in transit, FOB origin 15 Goods returned by customer in good condition 16 Items in receiving department, personnel refused to received due to damage 17 Goods found in the shipping department What is the correct amount of inventory as of December 31, 2022? 350,000 10,000 162,500 37,500 550,000 25,000 50,000 12,500 187,500 15,000 50,000 100,000 62,500 40,000 15,000 25,000 35,000 N.B. Use the following format in your solution: Item No. Supporting Computation (if necessary) Amount | XXX.XXX XXX XXX Total XXХ XXX XX XX XX
Crimson reported inventory amounting to P1,727,500 in its December 31, 2022 statement of financial position. Upon verification of the inventory ledger, the following compositions were found: Item 1 Raw materials inventory in the warehouse 2 Office supplies 3 Work in process inventory 4 Shipping cartons 5 Newly finished goods inventories in the factory, including goods specifically segregated per sales contract (considered sold), P50,000 6 Finished goods out on approval, at cost 7 Advances to supplier for materials ordered 8 Damaged and unsalable finished goods, at cost 9 Merchandise items in the showroom at 50% on cost 10 Prepaid insurance on inventories 11 Goods held on consignment, at sales price (cost is P37,500) 12 Merchandise in the hand of the agents including 40% profit on sales 13 Merchandise inventories in transit to customers, FOB Destination at cost 14 Raw materials in transit, FOB origin 15 Goods returned by customer in good condition 16 Items in receiving department, personnel refused to received due to damage 17 Goods found in the shipping department What is the correct amount of inventory as of December 31, 2022? 350,000 10,000 162,500 37,500 550,000 25,000 50,000 12,500 187,500 15,000 50,000 100,000 62,500 40,000 15,000 25,000 35,000 N.B. Use the following format in your solution: Item No. Supporting Computation (if necessary) Amount | XXX.XXX XXX XXX Total XXХ XXX XX XX XX
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Crimson reported inventory amounting to P1,727,500 in its December 31, 2022 statement of financial
position. Upon verification of the inventory ledger, the following compositions were found:
Item 1 Raw materials inventory in the warehouse
2 Office supplies
3 Work in process inventory
4 Shipping cartons
5 Newly finished goods inventories in the factory, including goods specifically
segregated per sales contract (considered sold), P50,000
6 Finished goods out on approval, at cost
7 Advances to supplier for materials ordered
8 Damaged and unsalable finished goods, at cost
9 Merchandise items in the showroom at 50% on cost
10 Prepaid insurance on inventories
11 Goods held on consignment, at sales price (cost is P37,500)
12 Merchandise in the hand of the agents including 40% profit on sales
13 Merchandise inventories in transit to customers, FOB Destination at cost
14 Raw materials in transit, FOB origin
15 Goods returned by customer in good condition
16 Items in receiving department, personnel refused to received due to damage
17 Goods found in the shipping department
What is the correct amount of inventory as of December 31, 2022?
350,000
10,000
162,500
37,500
550,000
25,000
50,000
12,500
187,500
15,000
50,000
100,000
62,500
40,000
15,000
25,000
35,000
N.B. Use the following format in your solution:
Item No. Supporting Computation (if necessary)
Amount
XXX.XXX
XXX.XXX
Total XXX.XXX
XX
XX
XX
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