Raw materials……………………………………………………………….P 1,400,000 Advances for materials ordered…………………………………………. 200,000 Work in process……………………………………………………………. 650,000 Unexpired inventory insurance…………………………………………. 60,000 Advertising catalogs and packaging cartons…………………………. 150,000 Finished goods inventory in the warehouse…………………………... 2,000,000 Finished goods in the company owned retail store, stated at 50% mark-up on its cost…………………………………………………… 750,000 Finished goods in the hands of consignees including 40% profit on sales…………………………………………………………. 400,000 Finished goods in transit to customers, Shipped at FOB-Destination stated at cost…………………………………………………………… 250,000 Finished goods out on customers’ approval, at cost…………………. 100,000 Unsalable finished goods, at cost………………………………………. 50,000 Office stationeries and supplies………………………………………… 40,000 Materials in transit, shipped FOB-Shipping point, excluding P 30,000 freight cost………………………………………………….... 330,000 Goods held on consignment, at sales price, cost, P 150,000……….. 200,000 What is the correct amount of inventory? P 5,375,000 P 5,500,000 C. P 5,540,000 D. P 5,250,000
Raw materials……………………………………………………………….P 1,400,000
Advances for materials ordered…………………………………………. 200,000
Work in process……………………………………………………………. 650,000
Unexpired inventory insurance…………………………………………. 60,000
Advertising catalogs and packaging cartons…………………………. 150,000
Finished goods inventory in the warehouse…………………………... 2,000,000
Finished goods in the company owned retail store, stated at 50%
mark-up on its cost…………………………………………………… 750,000
Finished goods in the hands of consignees including 40%
profit on sales…………………………………………………………. 400,000
Finished goods in transit to customers, Shipped at FOB-Destination
stated at cost…………………………………………………………… 250,000
Finished goods out on customers’ approval, at cost…………………. 100,000
Unsalable finished goods, at cost………………………………………. 50,000
Office stationeries and supplies………………………………………… 40,000
Materials in transit, shipped FOB-Shipping point, excluding
P 30,000 freight cost………………………………………………….... 330,000
Goods held on consignment, at sales price, cost, P 150,000……….. 200,000
What is the correct amount of inventory?
- P 5,375,000 P 5,500,000 C. P 5,540,000 D. P 5,250,000
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