PROBLEM 2: BBB Company, your audit client for the current year included the followingitems under inventories: Raw materials P 1,400,000 Advances for materials ordered 200,000 Goods in process 650,000 Unexpired insurance on inventories 60,000 Advertising catalogs and shipping boxes 150,000 Finished goods in factory 2,000,000 Finished goods in company owned retail stores including 50% profit on cost 750,000 Finished goods in hands of consignees including 40% profit on sales 400,000 Finished goods in transit to customers, shipped FOB destination, at cost 250,000 Finished goods out on approval, at cost 100,000 Unsalable finished goods, at cost 50,000 Office supplies 40,000 Materials in transit shipped FOB shipping point, excluding freight of P30,000 330,000 Goods held on consignment, at selling price, with a cost of P150,000 200,000 Compute the amount to be presented as inventories under current assets in thestatement of financial position for the year.
PROBLEM 2: BBB Company, your audit client for the current year included the followingitems under inventories:
Raw materials P 1,400,000
Advances for materials ordered 200,000
Goods in process 650,000
Unexpired insurance on inventories 60,000
Advertising catalogs and shipping boxes 150,000
Finished goods in factory 2,000,000
Finished goods in company owned retail stores
including 50% profit on cost 750,000
Finished goods in hands of consignees including
40% profit on sales 400,000
Finished goods in transit to customers, shipped
FOB destination, at cost 250,000
Finished goods out on approval, at cost 100,000
Unsalable finished goods, at cost 50,000
Office supplies 40,000
Materials in transit shipped FOB shipping point,
excluding freight of P30,000 330,000
Goods held on consignment, at selling price,
with a cost of P150,000 200,000
- Compute the amount to be presented as inventories under current assets in thestatement of financial position for the year.
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