On December 31, 2020, Cheung Shing Mars Corporation has a balance of P45,000 in its raw materials inventory account, determined through physical count, and a balance of P90,000 in it accounts payable account. The balances were determined before any consideration of the following data: Factory supplies Goods held on consignment |Costs identified with units completed but not yet sold Freight charges on goods sold Factory labor costs incurred on goods not yet fully processed Goods sold f.o.b. destination that are in transit at year-end |Goods sold on installment basis not yet fully paid 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 15,000 20,000 80,000 25,000 50,000 30,000 40,000 60,000 8. What is the correct balance of inventory as of December 31, 2020?
On December 31, 2020, Cheung Shing Mars Corporation has a balance of P45,000 in its raw materials inventory account, determined through physical count, and a balance of P90,000 in it accounts payable account. The balances were determined before any consideration of the following data: Factory supplies Goods held on consignment |Costs identified with units completed but not yet sold Freight charges on goods sold Factory labor costs incurred on goods not yet fully processed Goods sold f.o.b. destination that are in transit at year-end |Goods sold on installment basis not yet fully paid 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 15,000 20,000 80,000 25,000 50,000 30,000 40,000 60,000 8. What is the correct balance of inventory as of December 31, 2020?
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 17E: Nelson Fabrication Inc. had a remaining credit balance of $20,000 in its under- and overapplied...
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