Reference no: EM132760604
Question - The balances of the inventories of Essex Corporation are presented below:
|
|
Dec. 31, 2017
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Dec. 31, 2018
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|
Finished goods
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815,000
|
780,000
|
|
Work-in-process
|
340,000
|
354,000
|
|
Raw materials
|
200,000
|
185,000
|
The allowance for inventory write-down for the finished goods as of December 31, 2017 is at P15,000.
Audit notes:
The entity purchased P1,200,000 worth of raw materials for 2018. 80% of the purchases were on account.
P25,000 worth of raw materials are still in transit as of December 31, 2018. It was included in the ending inventory, but was only recorded as purchase in January 5, 2019. The term is FOB shipping point.
Factory overhead for the year total to P840,000, which is 20% more than the direct labor.
The estimated selling price of the finished goods is P800,000 and the estimated cost to sell the goods is at 4% of its selling price.
Required - How much is the cost of goods sold for 2018?