Reference no: EM132944527

Problem - M Company has the following information pertaining to its merchandise inventory as of December 31, 2021:

a. Store supplies 4 000

b. Advertising catalogs 15 000

c. Materials 140 000

d. Inventory on Hand (Including merchandise received on consignment of P 20 000) 400 000

e. Factory supplies 10 000

f. Inventory purchased with a buyback agreement 100 000

g. Inventory shipped on consignment to O including freight of P 4 000 64 000

h. Finished goods in entity-owned retail store, including 50% profit on cost 75 000

i. Finished goods in hands of consignees, including 40% profit on sales 40 000

j. Work in Process 65 000

k. Unexpired insurance on inventory 6 000

l. Unsalable Finished goods, at cost 5 000

m. Advance for materials ordered 20 000

n. Merchandise in transit, FOB Shipping Point including P 5 000 freight 155 000

o. Merchandise in transit, Free alongside, including delivery cost alongside the vessel of P 6 000 but excluding the cost of shipment of P 3 000 250 000

p. Merchandise in transit, CIF (including insurance costs and freight of P 8 000) 175 000

q. Merchandise sold in transit, shipped FOB destination at cost 25 000

r. Materials in transit, shipped FOB shipping point, excluding freight P 3 000 33 000

s. Goods held on Consignment from P, at sales price, cost P 15 000 20 000

Required - What is the correct amount of inventory?