Intermediate Accounting Inventories - Show Complete Solution and Explain:

Question 31

A list of things that may or may not be recorded as inventory in Dark Company's December 31, 2018 Balance Sheet is provided below:

1. Goods out on consignment at another company's store P950,000 2. Goods sold on installment basis 75,000 3. Goods purchased FOB shipping point that are in transit at Dec. 31 150,000 4. Goods purchased FOB destination that are in transit at Dec. 31 180,000 5. Goods sold to another company, for which our company has signed an agreement to repurchase at a set price that covers all costs related to the inventory 480,000 6. Interest cost incurred for inventories that are routinely manufactured 50,000 7. Costs incurred to advertise goods held for resale 50,000 8. Materials on hand not yet placed into production 500,000 Office supplies 250,000 10. Raw materials on which the company has started production, but which are not completely processed 400,000 11. Factory supplies 40,000 12. Goods held on consignment from another company 500,000 13. Costs identified with units completed but not yet sold 270,000 14. Goods sold FOB destination that are in transit at Dec. 31 30,000 15. Temporary investment in stocks and bonds that will be resold in the near future 400,000 16. Goods sold where large returns are predictable 300,000 17. Goods sold FOB shipping point that are in transit on Dec. 31 150,000 18. Freight charges on goods purchased 100,000 19. Factory labor costs incurred on goods still unsold 80,000