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3. Presented below is Seduco Company's December 31, 2021 balance sheet: Goods out on consignment at another company's store P 800,000 |Goods purchased in transit, Free Alongside, including delivery cost alongside the vessel of P2,000 but excluding the cost of shipment of 80,000 P1,000 Goods purchased FOB shipping point that are in transit at December 31 120,000 Goods purchased FOB destination that are in transit at December 31 200,000 Goods sold and delivered on December 20. The goods were included in the inventory because the sale was accompanied by a purchase agreement requiring Seduco to buy back the inventory on February 2022 500,000 Goods sold FOB shipping point that are in transit December 31 120,000 Freight charges on goods purchased, FOB shipping point 80,000

3. Presented below is Seduco Company's December 31, 2021 balance sheet: Goods out on consignment at another company's store P 800,000 |Goods purchased in transit, Free Alongside, including delivery cost alongside the vessel of P2,000 but excluding the cost of shipment of 80,000 P1,000 Goods purchased FOB shipping point that are in transit at December 31 120,000 Goods purchased FOB destination that are in transit at December 31 200,000 Goods sold and delivered on December 20. The goods were included in the inventory because the sale was accompanied by a purchase agreement requiring Seduco to buy back the inventory on February 2022 500,000 Goods sold FOB shipping point that are in transit December 31 120,000 Freight charges on goods purchased, FOB shipping point 80,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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3. Presented below is Seduco Company's December 31, 2021 balance sheet: Goods out on consignment at another company's store P 800,000 Goods purchased in transit, Free Alongside, including delivery cost alongside the vessel of P2,000 but excluding the cost of shipment of 80,000 P1,000 Goods purchased FOB shipping point that are in transit at December 31 120,000 | Goods purchased FOB destination that are in transit at December 31 200,000 Goods sold and delivered on December 20. The goods were included in the inventory because the sale was accompanied by a purchase agreement requiring Seduco to buy back the inventory on February 2022 500,000 Goods sold FOB shipping point that are in transit December 31 120,000 Freight charges on goods purchased, FOB shipping point 80,000 Factory labor costs incurred on goods still unsold 50,000 Interest cost incurred for inventories that are routinely manufactured 40,000 Cost incurred to advertise goods held for resale 20,000 Materials on hand not yet placed into production 350,000 Office supplies 10,000 Raw materials which the company has started production, but which are not completely processed 280,000 Factory supplies 20,000 Goods held on consignment from another company 450,000 Costs identified with units completed but not yet sold 260,000 Goods sold FOB destination that are in transit at December 31 40,000 How much of these items would typically be reported as inventory in the financial statements? a. 2,079,000 b. 2,580,000 c. 2,579,000 d. 3,079,000
Transcribed Image Text:3. Presented below is Seduco Company's December 31, 2021 balance sheet: Goods out on consignment at another company's store P 800,000 Goods purchased in transit, Free Alongside, including delivery cost alongside the vessel of P2,000 but excluding the cost of shipment of 80,000 P1,000 Goods purchased FOB shipping point that are in transit at December 31 120,000 | Goods purchased FOB destination that are in transit at December 31 200,000 Goods sold and delivered on December 20. The goods were included in the inventory because the sale was accompanied by a purchase agreement requiring Seduco to buy back the inventory on February 2022 500,000 Goods sold FOB shipping point that are in transit December 31 120,000 Freight charges on goods purchased, FOB shipping point 80,000 Factory labor costs incurred on goods still unsold 50,000 Interest cost incurred for inventories that are routinely manufactured 40,000 Cost incurred to advertise goods held for resale 20,000 Materials on hand not yet placed into production 350,000 Office supplies 10,000 Raw materials which the company has started production, but which are not completely processed 280,000 Factory supplies 20,000 Goods held on consignment from another company 450,000 Costs identified with units completed but not yet sold 260,000 Goods sold FOB destination that are in transit at December 31 40,000 How much of these items would typically be reported as inventory in the financial statements? a. 2,079,000 b. 2,580,000 c. 2,579,000 d. 3,079,000
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