List price of inventory Trade discount Import duties Import tax - not recoverable Import tax - recoverable Freight from abroad to Philippine port Freight from Philippine port to warehouse Freight from warehouse to customer P1,000,000 10% 200,000 75,000 25,000 30,000 10,000 15,000
ANNA Company purchased inventories from abroad for resale incurring the following costs:
Determine the cost to be capitalized as part of inventory.
2. ROSALINDA Company accepted a special manufacturing order from RIZZA Company. The Company incurred P250,000 for materials and P170,000 for conversion costs. Since this is a special order, the Company also incurred P100,000 for designing the product and P50,000 for modifying the current production process. In addition, excessive wastage of materials amounting to P80,000 was incurred because of the highly-specialized nature of the order. Lastly, the Company also incurred storage cost of P70,000 when the inventory was in work-in-process stage and P40,000 when it was already a finished product. What amount should be capitalized as part of inventory?
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