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 700,000Date Purchases Date Sales Nov. 1 700 P8.50 Nov. 2 450 P10.00 5 950 P9.00 8 600 P10.00 9 750 P8.75 11 500 P11.00 16 1,000 P9.00 12 250 P12.00 25 300 P8.40 20 800 P12.00 28 200 @ P11.50