Please refer to the picture below for information. Kindly use a Table in showing the complete solution. Thank you so much. Question: What is the correct amount of “Inventory” that should be presented in 2016 Statement of financial position?a. P4,872,000b. P5,100,000c. P4,280,000d. P4,800,000 1. Bakura Company had the following items in its accounting records for December 31, 2016:Inventories in the warehouse per physical count on 12/31/16:Goods completed and ready for saleP1,000,000800,000300,000Raw materialsIndirect materials (included in the raw materials)Goods started to process but not yet completedGoods sold in transit under FOB shipping pointGoods sold in transit under FOB buyerGoods sold under sales return agreement at selling price (cost - P300,000)Goods sold under sales approval agreement at selling price (cost - P100,000)Materials purchased, sales invoice already received but goods werein transit. Including freight paid by Bakura P20,000Insurance paid on materials purchased in transit1-year insurance on inventories located in the warehouseGoods being used for window display1,200,000500,000200,000450,000150,000520,00010,00090,00080,000Goods in the counter for sale400,00020,000Office suppliesAdvertising and shipping suppliesGoods held by salesmen, at selling price (cost - P180,000)Goods held on consignmentGoods out on consignment, excluding shipping cost paid by Bakura, P10,000Unsalable finished goods (included in the physical count above)Materials in the receiving department refused by us due to damageInterest expense on loans payable used to purchase inventories30,000252,000750,000350,00050,000120,00015,000Goods sold on installment basis460,000

As per perpetual inventory system, the value of inventory is determined based on the beginning…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please refer to the picture below for information. Kindly use a Table in showing the complete solution. Thank you so much.

Question: What is the correct amount of “Inventory” that should be presented in 2016 Statement of financial position?

a. P4,872,000

b. P5,100,000

c. P4,280,000

d. P4,800,000

1. Bakura Company had the following items in its accounting records for December 31, 2016:
Inventories in the warehouse per physical count on 12/31/16:
Goods completed and ready for sale
P1,000,000
800,000
300,000
Raw materials
Indirect materials (included in the raw materials)
Goods started to process but not yet completed
Goods sold in transit under FOB shipping point
Goods sold in transit under FOB buyer
Goods sold under sales return agreement at selling price (cost - P300,000)
Goods sold under sales approval agreement at selling price (cost - P100,000)
Materials purchased, sales invoice already received but goods were
in transit. Including freight paid by Bakura P20,000
Insurance paid on materials purchased in transit
1-year insurance on inventories located in the warehouse
Goods being used for window display
1,200,000
500,000
200,000
450,000
150,000
520,000
10,000
90,000
80,000
Goods in the counter for sale
400,000
20,000
Office supplies
Advertising and shipping supplies
Goods held by salesmen, at selling price (cost - P180,000)
Goods held on consignment
Goods out on consignment, excluding shipping cost paid by Bakura, P10,000
Unsalable finished goods (included in the physical count above)
Materials in the receiving department refused by us due to damage
Interest expense on loans payable used to purchase inventories
30,000
252,000
750,000
350,000
50,000
120,000
15,000
Goods sold on installment basis
460,000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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