Purchase price of raw materials P100,000 Rebates on raw material purchases 2,000 Import taxes 17,000 Local taxes paid in relation to the purchase 1,500 Freight-in 5,000 12% VAT on the purchase price 12,000 Interest expense related to the purchase 3,200 Utilities used on factories 20,000 Wages of factory personnel 50,000 Salaries of accountants 12,000 Depreciation of factory equipment 22,000 Depreciation of the head office 32,000 Normal losses during production 1,000 Abnormal losses during production 2,800 General and administrative expenses 20,000 Storage costs of work-in-process inventories 7,000 Storage costs of finished goods inventories 4,000 Shipping costs on sale of finished goods 3,000 How much is the total cost of inventories?
Problem 1
Purchase price of raw materials P100,000
Rebates on raw material purchases 2,000
Import taxes 17,000
Local taxes paid in relation to the purchase 1,500
Freight-in 5,000
12% VAT on the purchase price 12,000
Interest expense related to the purchase 3,200
Utilities used on factories 20,000
Wages of factory personnel 50,000
Salaries of accountants 12,000
Depreciation of the head office 32,000
Normal losses during production 1,000
Abnormal losses during production 2,800
General and administrative expenses 20,000
Storage costs of work-in-process inventories 7,000
Storage costs of finished goods inventories 4,000
Shipping costs on sale of finished goods 3,000
How much is the total cost of inventories?
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