d goods in storeroom, at cost; including overhead of P400,000 or 20%. 2,000,000 Finished goods 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 returne
d goods in storeroom, at cost; including overhead of P400,000 or 20%. 2,000,000 Finished goods 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 returne
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Subaru Company provided the following information a the end of the year:
| Finished goods in storeroom, at cost; including overhead of P400,000 or 20%. | 2,000,000 |
| Finished goods 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 |
720,000 |
| Materials | 1,000,000 |
| Materials in transit, FOB destination | 50,000 |
| Defective materials returned to suppliers | 100,000 |
| Shipping supplies | 20,000 |
| Gasoline and oil for testing finished goods | 110,000 |
| Machine lubricants | 60,000 |
What is the correct amount of inventory?
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