Intermediate Accounting Inventories - Show Complete Solution and Explain:

Question 28

At the end of the current year, Moon Company released the following information:

1. Finished goods in storeroom, at cost, including overhead of P450,000 or 30% P1,500,000 2. Materials 1,200,000 3. Materials in transit, FOB destination 40,000 4. Defective materials returned to suppliers 80,000 5. Shipping supplies 10,000 6. Gasoline and old for testing finished goods 120,000 7. Machine lubricants 50,000 8. Finished goods in transit, including freight charges of P30,000, FOB shipping point 300,000 9. Finished goods held by salesmen, at selling price, cost, P130,000 180,000 10. Goods in process, at cost of materials and direct labor 700,000