FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Parker Corp. included the following items under its inventory account:
Raw materials 1,400,000
Advances for materials ordered 200,000
Work in process 650,000
Unexpired inventory insurance 60,000
Advertising catalogs and packaging cartons 150,000
Finished goods inventory in the warehouse 2,000,000
Finished goods in the company owned retail store, stated at 50%
mark-up on its cost 750,000
Finished goods in the hands of consignees including 40%
profit on sales 400,000
Finished goods in transit to customers, Shipped at FOB-Destination
stated at cost 250,000
Finished goods out on customers’ approval, at cost 100,000
Unsalable finished goods, at cost 50,000
Office stationeries and supplies 40,000
Materials in transit, shipped FOB-Shipping point, excluding
P 30,000 freight cost 330,000
Goods held on consignment, at sales price, cost, P 150,000 200,000
What is the correct amount of inventory?
- P 5,375,000 P 5,500,000 C. P 5,540,000 D. P 5,250,000
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