Gumamela Company installs replacement siding, windows, and louvered glass doors for family homes. At December 31, 2020, the balance of inventory account was P502,000, and the allowance for inventory write down was P33,000. The inventory cost and market data at December 31, 2020, are as follows: CostReplacement Cost Sales Price NRVNormal ProfitAluminum siding P 89,000 P 86,000 P 91,500 P 87,000 P 5,000Mahogany siding 94,000 92,000 93,000 85,000 7,000Louvered glass door 125,000135,000129,000111,00010,000Glass windows194,000114,000205,000197,00020,000TotalP 502,000P 427,000P 518,500P 480,000P 32,000 The correct balance of the inventory after any allowance for write down is

Name: Gumamela Company installs replacement siding, windows, and louvered gl
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Gumamela Company installs replacement siding, windows, and louvered glass doors for family homes. At December 31, 2020, the balance of inventory account was P502,000, and the allowance for inventory write down was P33,000. The inventory cost and ma

Inventory is defined as the amount and quantity of goods held with the entity for the use of sale…

Answered: The correct balance of the inventory…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

Gumamela Company installs replacement siding, windows, and louvered glass doors for family homes. At December 31, 2020, the balance of inventory account was P502,000, and the allowance for inventory write down was P33,000. The inventory cost and market data at December 31, 2020, are as follows:

	Cost	Replacement Cost	Sales Price	NRV	Normal Profit
Aluminum siding	P 89,000	P 86,000	P 91,500	P 87,000	P 5,000
Mahogany siding	94,000	92,000	93,000	85,000	7,000
Louvered glass door	125,000	135,000	129,000	111,000	10,000
Glass windows	194,000	114,000	205,000	197,000	20,000
Total	P 502,000	P 427,000	P 518,500	P 480,000	P 32,000

The correct balance of the inventory after any allowance for write down is

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions