Basista Corporation manufactures three models of gear shift components for bicycles that are sold to bicycle manufacturers, retailers, and catalog outlets Since beginning operations in 1944, Basista has used normal absorption costing and has assumed a first in, first out cost flow in its perpetual inventory system Except for overhead, manufacturing costs are accumulated using actual costs Overhead is applied to production using predetermined overhead rates The balances of the inventory accounts at December 31, 2010 are shown below The inventories are stated at cost before any year end adjustments Finished goods P2,588,000 Work in process 450,000 Raw materials 960,000 Factory supplies 276,000 The following information relates to Basistas inventory and operations The finished goods inventory consists of the items analyzed below Cost NRV Down tube shifter P1,080,000 P1,056,000 Bar end shifter 728,000 750,400 Head tube shifter 780,000 787,800 Total P2,588,000 P2,594,200 One half of the head tube shifter finished goods inventory is held by catalog outlets on consignment Three quarters of the bar end shifter finished goods inventory has been pledged as collateral for a bank loan One half of the raw materials balance was acquired at a contracted price 20 percent above the current market price The replacement cost of the rest of the raw materials is P509,600 The net realizable value of the work in process inventory is P434,800 Included in the cost of factory supplies are obsolete items with a historical cost of P16,800 The replacement cost of the remaining factory supplies is P263,600 Basista applies the lower of cost or NRV rule to each of the three types of shifters in finished goods inventory For each of the other inventory accounts, Basista applies the lower of cost or NRV method to the total of each inventory account Based on the above and the result of your audit, answer the following 1 The finished goods inventory on December 31, 2010 should be valued at 2 The raw materials inventory on December 31, 2010 should be valued at 3 The factory supplies inventory on December 31, 2010 should be valued at 4 The total inventories to be recognized in the statement of financial position as of December 31, 2010 is

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Basista Corporation manufactures three models of gear shift components for bicycles that are sold to bicycle manufacturers, retailers, and catalog outlets. Since beginning operations in

Basista Corporation manufactures three models of gear shift components for bicycles that are sold to bicycle manufacturers, retailers, and catalog outlets. Since beginning operations in 1944, Basista has used normal absorption costing and has assumed a first-in, first-out cost flow in its perpetual inventory system. Except for overhead, manufacturing costs are accumulated using actual costs. Overhead is applied to production using predetermined overhead rates. The balances of the inventory accounts at December 31, 2010 are shown below. The inventories are stated at cost before any year-end adjustments.

Finished goods	P2,588,000
Work-in-process	450,000
Raw materials	960,000
Factory supplies	276,000

The following information relates to Basista’s inventory and operations.

The finished goods inventory consists of the items analyzed below.

	Cost	NRV
Down tube shifter	P1,080,000	P1,056,000
Bar end shifter	728,000	750,400
Head tube shifter	780,000	787,800
Total	P2,588,000	P2,594,200

One-half of the head tube shifter finished goods inventory is held by catalog outlets on consignment.

Three-quarters of the bar end shifter finished goods inventory has been pledged as collateral for a bank loan.

One-half of the raw materials balance was acquired at a contracted price 20 percent above the current market price. The replacement cost of the rest of the raw materials is P509,600.

The net realizable value of the work-in-process inventory is P434,800.

Included in the cost of factory supplies are obsolete items with a historical cost of P16,800. The replacement cost of the remaining factory supplies is P263,600.

Basista applies the lower of cost or NRV rule to each of the three types of shifters in finished goods inventory. For each of the other inventory accounts, Basista applies the lower of cost or NRV method to the total of each inventory account.

Based on the above and the result of your audit, answer the following:

1. The finished goods inventory on December 31, 2010 should be valued at

2. The raw materials inventory on December 31, 2010 should be valued at

3. The factory supplies inventory on December 31, 2010 should be valued at

4. The total inventories to be recognized in the statement of financial position as of December 31, 2010 is