21. In your audit of the December 31, 2016, financial statements of CHICKEN, INC., you found the following inventory-related transactions. Goods costing P50,000 are on consignment with a customer. These goods were not included in the physical count on December 31, 2016. Goods costing P16,500 were delivered to Chicken, Inc. on January 4, 2017. The invoice for these goods was received and recorded on January 10, 2017. The invoice showed the shipment was made on December 29, 2016, FOB shipping point. Goods costing P21,640 were shipped FOB shipping point on December 31, 2016, and were received by the customer on January 2, 2017. Although the sale was recorded in 2016, these goods were included in the 2016 ending inventory. Goods costing P8,640 were shipped to a customer on December 31, 2016, FOB destination. These goods were delivered to the customer on January 5, 2017, and were not included in the inventory. The sale was properly taken up in 2017. Goods costing P8,600 shipped by a vendor under FOB destination term, were received January 3, 2017, and thus were not included in the physical inventor related invoice was received on December 31, 2016, this shipment was recorded as a purchase in 2016. Because the Goods valued at P51,000 were received from a vendor under consignment term. These goods were included in the physical count. Chicken, Inc. recorded as a 2016 sale a P64,300 shipment of goods to a customer on December 31, 2016, FOB destination. This shipment of goods costing P37,500 was received by the customer on January 5, 2017, and was not included in the ending inventory figure. Prior to any adjustments, Chicken, Inc.'s ending inventory is valued at P445,000 and the reported net income for the year is P1,648,000. Chicken's December 31, 2016, inventory should be increased by a. P8,000 b. P40,000 c. P66,000 d. P61,640
21. In your audit of the December 31, 2016, financial statements of CHICKEN, INC., you found the following inventory-related transactions. Goods costing P50,000 are on consignment with a customer. These goods were not included in the physical count on December 31, 2016. Goods costing P16,500 were delivered to Chicken, Inc. on January 4, 2017. The invoice for these goods was received and recorded on January 10, 2017. The invoice showed the shipment was made on December 29, 2016, FOB shipping point. Goods costing P21,640 were shipped FOB shipping point on December 31, 2016, and were received by the customer on January 2, 2017. Although the sale was recorded in 2016, these goods were included in the 2016 ending inventory. Goods costing P8,640 were shipped to a customer on December 31, 2016, FOB destination. These goods were delivered to the customer on January 5, 2017, and were not included in the inventory. The sale was properly taken up in 2017. Goods costing P8,600 shipped by a vendor under FOB destination term, were received January 3, 2017, and thus were not included in the physical inventor related invoice was received on December 31, 2016, this shipment was recorded as a purchase in 2016. Because the Goods valued at P51,000 were received from a vendor under consignment term. These goods were included in the physical count. Chicken, Inc. recorded as a 2016 sale a P64,300 shipment of goods to a customer on December 31, 2016, FOB destination. This shipment of goods costing P37,500 was received by the customer on January 5, 2017, and was not included in the ending inventory figure. Prior to any adjustments, Chicken, Inc.'s ending inventory is valued at P445,000 and the reported net income for the year is P1,648,000. Chicken's December 31, 2016, inventory should be increased by a. P8,000 b. P40,000 c. P66,000 d. P61,640
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:21. In your audit of the December 31, 2016, financial statements of CHICKEN, INC., you found the
following inventory-related transactions.
Goods costing P50,000 are on consignment with a customer. These goods were not
included in the physical count on December 31, 2016.
Goods costing P16,500 were delivered to Chicken, Inc. on January 4, 2017. The
invoice for these goods was received and recorded on January 10, 2017. The invoice
showed the shipment was made on December 29, 2016, FOB shipping point.
Goods costing P21,640 were shipped FOB shipping point on December 31, 2016, and
were received by the customer on January 2, 2017. Although the sale was recorded in
2016, these goods were included in the 2016 ending inventory.
Goods costing P8,640 were shipped to a customer on December 31, 2016, FOB
destination. These goods were delivered to the customer on January 5, 2017, and were
not included in the inventory. The sale was properly taken up in 2017.
Goods costing P8,600 shipped by a vendor under FOB destination term, were received
on January 3, 2017, and thus were not included in the physical inventory. Because the
related invoice was received on December 31, 2016, this shipment was recorded as a
purchase in 2016.
Goods valued at P51,000 were received from a vendor under consignment term. These
goods were included in the physical count.
Chicken, Inc. recorded as a 2016 sale a P64,300 shipment of goods to a customer on
December 31, 2016, FOB destination. This shipment of goods costing P37,500 was
received by the customer on January 5, 2017, and was not included in the ending
inventory figure.
Prior to any adjustments, Chicken, Inc.'s ending inventory is valued at P445,000 and the
reported net income for the year is P1,648,000.
Chicken's December 31, 2016, inventory should be increased by
a. P8,000
b. P40,000
c. P66,000
d. P61,640
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