Problem 1. How much is the adjusted inventory? * Makati Company is preparing its 2022 financial statements. Prior to any adjustments, inventory is valued at P1,605,000. During your audit, you found the following information relating to certain inventory transactions from your cutoff test. a. b. C. e. f. Goods valued at P110,000 are on consignment with a customer. These goods were not included in the ending inventory figure. d. A P35,000 shipment of goods to a customer on December 31, terms FOB destination was not included in the year-end inventory. The goods cost P26,000 and were delivered to the customer on January 8, 2023. The sale was properly recorded in 2023. g. Goods costing P87,000 were received from a vendor on January 5, 2023. The related invoice was received and recorded on January 12, 2023. The goods were shipped on December 31, 2022, terms FOB shipping point. Goods costing P85,000, sold for P102,000, were shipped on December 31, 2022, and were delivered to the customer on January 2, 2023. The terms of the invoice were FOB shipping point. The goods were included in the ending inventory for 2022 and the sale was recorded in 2023. The invoice for goods costing P35,000 was received and recorded as a purchase on December 31, 2022. The related goods shipped FOB destination were received on January 2, 2023, and thus were not included in the physical inventory. Goods valued at P154,000 are on consignment from a vendor. These goods are not included in the physical inventory. A P60,000 shipment of goods to a customer on December 30, 2022, terms FOB destination, was recorded as a sale in 2023. The goods, costing P37,000 and delivered to the customer on January 6, 2023, were not included in the 2022 ending inventory.
Problem 1. How much is the adjusted inventory? * Makati Company is preparing its 2022 financial statements. Prior to any adjustments, inventory is valued at P1,605,000. During your audit, you found the following information relating to certain inventory transactions from your cutoff test. a. b. C. e. f. Goods valued at P110,000 are on consignment with a customer. These goods were not included in the ending inventory figure. d. A P35,000 shipment of goods to a customer on December 31, terms FOB destination was not included in the year-end inventory. The goods cost P26,000 and were delivered to the customer on January 8, 2023. The sale was properly recorded in 2023. g. Goods costing P87,000 were received from a vendor on January 5, 2023. The related invoice was received and recorded on January 12, 2023. The goods were shipped on December 31, 2022, terms FOB shipping point. Goods costing P85,000, sold for P102,000, were shipped on December 31, 2022, and were delivered to the customer on January 2, 2023. The terms of the invoice were FOB shipping point. The goods were included in the ending inventory for 2022 and the sale was recorded in 2023. The invoice for goods costing P35,000 was received and recorded as a purchase on December 31, 2022. The related goods shipped FOB destination were received on January 2, 2023, and thus were not included in the physical inventory. Goods valued at P154,000 are on consignment from a vendor. These goods are not included in the physical inventory. A P60,000 shipment of goods to a customer on December 30, 2022, terms FOB destination, was recorded as a sale in 2023. The goods, costing P37,000 and delivered to the customer on January 6, 2023, were not included in the 2022 ending inventory.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Problem 1. How much is the adjusted inventory? *
Makati Company is preparing its 2022 financial statements. Prior to any adjustments,
inventory is valued at P1,605,000. During your audit, you found the following information
relating to certain inventory transactions from your cutoff test.
a.
b.
C.
e.
f.
Goods valued at P110,000 are on consignment with a customer. These goods were
not included in the ending inventory figure.
d.
A P35,000 shipment of goods to a customer on December 31, terms FOB destination
was not included in the year-end inventory. The goods cost P26,000 and were
delivered to the customer on January 8, 2023. The sale was properly recorded in
2023.
g.
Goods costing P87,000 were received from a vendor on January 5, 2023. The
related invoice was received and recorded on January 12, 2023. The goods were
shipped on December 31, 2022, terms FOB shipping point.
Goods costing P85,000, sold for P102,000, were shipped on December 31, 2022,
and were delivered to the customer on January 2, 2023. The terms of the invoice
were FOB shipping point. The goods were included in the ending inventory for 2022
and the sale was recorded in 2023.
The invoice for goods costing P35,000 was received and recorded as a purchase
on December 31, 2022. The related goods shipped FOB destination were received
on January 2, 2023, and thus were not included in the physical inventory.
Goods valued at P154,000 are on consignment from a vendor. These goods are
not included in the physical inventory.
A P60,000 shipment of goods to a customer on December 30, 2022, terms FOB
destination, was recorded as a sale in 2023. The goods, costing P37,000 and
delivered to the customer on January 6, 2023, were not included in the 2022 ending
inventory.
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