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 Finished goods held by salesmen, at selling price, cost P100,000 250,000 140,000 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:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Luminous Company provided the following information at current year-end:
Finished goods in storeroom, at cost including overhead of P400,000
Finished good in transit, including freight charge of P20,000, FOB shipping point
Finished goods held by salesmen, at selling price, cost P100,000
Goods in process, at cost of materials and direct labor
2,000,000
250,000
140,000
720,000
Materials
1,000,000
Materials in transit, FOB destination
Defective materials returned to suppliers for replacement
Shipping supplies
iGasoline and oil for testing finished goods
Machine lubricants
50,000
100,000
20,000
110,000
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 Finished good in transit, including freight charge of P20,000, FOB shipping point Finished goods held by salesmen, at selling price, cost P100,000 Goods in process, at cost of materials and direct labor 2,000,000 250,000 140,000 720,000 Materials 1,000,000 Materials in transit, FOB destination Defective materials returned to suppliers for replacement Shipping supplies iGasoline and oil for testing finished goods Machine lubricants 50,000 100,000 20,000 110,000 60,000 Required: Compute cost of inventory at current year-end: --- --- --- --- - - --- --.
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