AA Company reported inventory on December 31, 2018 at P6,000,000 based on a physical count of goods priced at cost and before any necessary year-end adjustments relating to the following: Included in the physical count were goods billed to a customer FOB shipping point on December 30, 2018. These goods had a cost of P125,000 and were picked up by the carrier on January 2, 2019. Goods shipped FOB shipping point on December 28, 2018 from a vendor to AA were received and recorded on January 2, 2019. The invoice cost was P300,000. What amount should be reported as inventory on December 31, 2018?

AA Company reported inventory on December 31, 2018 at P6,000,000 based on a physical count of goods priced at cost and before any necessary year-end adjustments relating to the following: Included in the physical count were goods billed to a customer FOB shipping point on December 30, 2018. These goods had a cost of P125,000 and were picked up by the carrier on January 2, 2019. Goods shipped FOB shipping point on December 28, 2018 from a vendor to AA were received and recorded on January 2, 2019. The invoice cost was P300,000. What amount should be reported as inventory on December 31, 2018?

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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