Required: Compute for the correct amount of inventory to be presented in CCC’s statement of financial position. Raw materials on which the company hasstarted production but not yet completedUnused machine lubricants450,00030,000Costs identified with units completed but not yetsold330,000Temporary investment in stocks and bonds thatwill be resold in the near future400,000Goods sold on installment basis due in threeequal annual paymentsGoods sold by Luanda with a right to repurchasethe same within six months220,000155,0003. Compute for the correct amount of inventory to be presented in CCC's statement offinancial position. CCC Company included the following items under inventories:Goods out on consignment at anothercompany's storeGoods held on consignment at the Luanda'sstoresP1,000,000750,000300,000Goods purchased FOB seller that are in transitOffice supplies not yet usedGoods purchased FOB buyer that are in transitGoods sold where large returns are predictableGoods sold FOB shipping point that are in transitFreight charges on goods purchasedInterest cost incurred for inventories that are30,000200,00060,000400,00030,000routinely manufacturedCosts incurred to advertise goods held for saleFactory labor costs incurred on goods still unsoldFreight paid for transporting goods to consigneesMaterials on hand not yet placed intoproduction50,00010,000400,00030,000500,000

Name: Required: Compute for the correct amount of inventory to be presented
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Description: Required: Compute for the correct amount of inventory to be presented in CCC’s statement of financial position. Raw materials on which the company hasstarted production but not yet completedUnused machine lubricants450,00030,000Costs identified with

Raw material is the input which is processed to convert it into a finished product. Basically they…

Answered: Raw materials on which the company has…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Required: Compute for the correct amount of inventory to be presented in CCC’s statement of financial position.

Raw materials on which the company has
started production but not yet completed
Unused machine lubricants
450,000
30,000
Costs identified with units completed but not yet
sold
330,000
Temporary investment in stocks and bonds that
will be resold in the near future
400,000
Goods sold on installment basis due in three
equal annual payments
Goods sold by Luanda with a right to repurchase
the same within six months
220,000
155,000
3. Compute for the correct amount of inventory to be presented in CCC's statement of
financial position.

CCC Company included the following items under inventories:
Goods out on consignment at another
company's store
Goods held on consignment at the Luanda's
stores
P1,000,000
750,000
300,000
Goods purchased FOB seller that are in transit
Office supplies not yet used
Goods purchased FOB buyer that are in transit
Goods sold where large returns are predictable
Goods sold FOB shipping point that are in transit
Freight charges on goods purchased
Interest cost incurred for inventories that are
30,000
200,000
60,000
400,000
30,000
routinely manufactured
Costs incurred to advertise goods held for sale
Factory labor costs incurred on goods still unsold
Freight paid for transporting goods to consignees
Materials on hand not yet placed into
production
50,000
10,000
400,000
30,000
500,000

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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