The closing inventory at cost of a company at December 31, 2019 amounted to P284,700. The following items were included at cost in the total: • 400 coats, which had cost P80 each and normally sold for P150 each. Owing to a defect in manufacture, they were all sold after the reporting date at 50% of their normal price. Selling expenses amounted to 5% of the proceeds. 800 skirts, which had cost P20 each. These too were found to be defective. Remedial work in February 2020 cost P5 per skirt, and selling expenses for the batch totalled P800. They were sold for P28 each. What should the inventory value be according to PAS 2 Inventories after considering the above items?

The closing inventory at cost of a company at December 31, 2019 amounted to P284,700. The following items were included at cost in the total: • 400 coats, which had cost P80 each and normally sold for P150 each. Owing to a defect in manufacture, they were all sold after the reporting date at 50% of their normal price. Selling expenses amounted to 5% of the proceeds. 800 skirts, which had cost P20 each. These too were found to be defective. Remedial work in February 2020 cost P5 per skirt, and selling expenses for the batch totalled P800. They were sold for P28 each. What should the inventory value be according to PAS 2 Inventories after considering the above items?

Name: The correct answer given is ₱281,200. Could you please show the soluti
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Description: The correct answer given is ₱281,200. Could you please show the solution, explaining how we arrived at that amount? Thank you! The closing inventory at cost of a company atDecember 31, 2019 amounted to P284,700. Thefollowing items were included at co

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 2MC: Moore Company uses the LIFO cost flow assumption and carries Product A in inventory on December 31,...

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