1.

Items counted in the bodega 4,000,000

Items included in the count specifically segregated per sale
100,000
contract
Items in receiving department, returned by customer, in good
50,000
condition
Items ordered and in the receiving department 400,000
Items shipped today, invoice mailed, FOB destination 150,000
Items currently being used for window display 200,000
Items on counter for sale 800,000
Items included in count, damage and unsalable (50,000)
Items in the shipping department 250,000

Correct amount of inventory 5,700,000

2.
Beginning raw materials(90,000 x 7) 630,000
Purchases (75,000 x 8 + 120,000 x 8.50) 1,620,000
Raw materials available for use 2,250,000
*Ending raw materials (90,000 x 8.50) ( 765,000)

Raw materials used 1,485,000

Direct labor 3,100,000
Manufacturing overhead 2,950,000

Total manufacturing cost 7,535,000

Beginning work in process (50,000 x 14) 700,000

Total work in process 8,235,000

Ending work in process (48,000 x 15) ( 720,000)

Cost of goods Manufactured 7,515,000

*Beginning raw materials of P90, 000 units plus purchases of P75, 000 and 120,000
minus 195,000 units transferred = 90,000 ending raw materials.