2. On November 1, a fire destroyed the work in process inventories of Kenshin Inc. After the fire a physical inventory was taken. November 1 January 1 P600,000 50,000 Direct raw materials P400,000...

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Question:

1. The amount of work in process inventory that was destroyed by fire amounted to

a. P510,000

b. P140,000

c. P460,000

d. P540,000

Extracted text: 2. On November 1, a fire destroyed the work in process inventories of Kenshin Inc. After the fire a physical inventory was taken. November 1 January 1 P600,000 50,000 Direct raw materials P400,000 Factory supplies Work in process Finished goods 80,000 ??? 300,000 500,000 900,000 For the 10 months ended October 31, Kenshin reported the following: P10,000,000 Direct labor (DL) 40,000 Manufacturing overhead 80,000 Gross profit rate Sales 4,000,000 Accounts payable, Jan. 1 Accounts payable, Oct. 31 Payment for purchases 40% of DL 35% 500,000