f. The cost of sales of F205,800 included direct labor oil-141,400 g. Normal scrap loss on established product lines is negligible. However, a special order started and completed during December had excessive scrap loss of 132.400. which was charged to Manufacturing overhead expense. Re uired: 1. What is the inventory per physica] count on November 30, 2018? 2. What is the correct amount ofthe physica] inventor}.r at November 30, 2015? Without considering items 1 and 2', assume that the correct amount of the inventory at Nov. 3E]; 2018 was P123100 3. What is the materials inventory at December 3 1, 2015? 4. What is the amount of direct labor cost included in the December 31. 2013 inventory? 5. What is the correct inventory at December 31. 2013? Problem 2: You are engaged in an audit of the Kuratso Co. for the year ended December 3 1. 2010. To reduce the workload at year- end. the company took its annual physical inventory under your obs enration on November 30. 2013. The company's inventory account. which includes raw materials and work in pro cess. is on a perpetual basis and it uses the rst-in. rst-out method of pricing. It has no nished goods inventory The company's physical inventory revealed that the book inventory of P181310 was understated by 139,000. To avoid distorting the interim financial statements. the company decided not to adjust the be ok inventory until year-end except for obsolete inventory items. Your audit revealed this information about the November 30 inve ntory: a. Pricing tests showed that the physical inventory was overpriced by PIE-.600 b. Footing and extension errors resulted in a P450 understatement of the physical inventory c. Direct labor included in the physical inventory amounted to P30.000. IICIIverhead was included at the rate of 200% of direct labor. You determined that the amount of direct lab or was correct and the overhead rate was proper d. The physical inventory included obsolete materials recorded at P? 50. During December. these materials were removed from the inventory account by a charge to cost of sales. Your audit also disclosed the following information about the December 3 1. 2018 inventory. e. Total debits to certain accounts durin- December are: Manufacturing overhead exp ense T360 0