Reference no: EM133146531
Problem 1 - The balance of work in process inventory account as of December 31, of the current year of Purewood Inc. amounted to P480,000. The estimated selling price is P450,000 while the estimate cost of completion and cost to sell amounted to P10,000 and P5,000 respectively. How much is the the loss on inventory write-down?
Problem 2 - For more than a decade since its incorporation, Feb-Ibig Company had been renting its office space. The Company President thought of constructing their own building for P40,000,000 which they plan to start and finish until December 31, 2021.
Feb-Ibig made the following payments, based on the construction contract, during 2021.
January 31- P5,000,000
February 28- P8,000,000
July 1- P15,000,000
August 31- P10,000,000
November 30- P2,000,000
Feb-Ibig secured a 10%, 4-year noted dated January 1, 2021, specifically intended for the construction. The amount was P20,000,000.
Also, the entity had other debts outstanding as follows:
8%, 6-year note dated December 31, 2019- P18,000,000
12%, 7-year noted dated December 31, 2018 - P22,000,000
What is the total cost of the building constructed?