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 Materials 720,000 1,000,000 Materials in transit, FOB destination Defective materials returned to suppliers for replacement 50,000 100,000 Shipping supplies Gasoline and oil for testing finished goods 20,000 110,000 Machine lubricants 60,000 Required: Compute cost of inventory at current year-end:
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 Materials 720,000 1,000,000 Materials in transit, FOB destination Defective materials returned to suppliers for replacement 50,000 100,000 Shipping supplies Gasoline and oil for testing finished goods 20,000 110,000 Machine lubricants 60,000 Required: Compute cost of inventory at current year-end:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
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 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:
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