Cake Corporation's inventory at the end of 2022 is P5,600,000 Included in the amount are the following items: •Goods displayed in the store, P200,000 Merchandise in transit, sold FOB shipping point, P1,600,000 Goods held on consignment, P340,000 Merchandise in transit to customers, FOB destination, shipped on 29 December 2022. Cost amounted to P560,000. The merchandise reached the customers on 31 December 2022 right before the Company closes its 2022 books You found out that the following cost of inventories were excluded in the reported amount of P5,600,000 Goods in transit, purchased FOB shipping point, P450,000 Goods out on consignment, at selling price of P280,000. Cost is maintained at 60% of selling price. -Freight paid on goods sold, P50,000 Goods sold with a right to return granted to buyers, amount of return is reasonably predictable, P120,000 Merchandise in the hands of traveling salesmen, P40,000 What is the correct amount of inventory as of December 31, 2022?
Cake Corporation's inventory at the end of 2022 is P5,600,000 Included in the amount are the following items: •Goods displayed in the store, P200,000 Merchandise in transit, sold FOB shipping point, P1,600,000 Goods held on consignment, P340,000 Merchandise in transit to customers, FOB destination, shipped on 29 December 2022. Cost amounted to P560,000. The merchandise reached the customers on 31 December 2022 right before the Company closes its 2022 books You found out that the following cost of inventories were excluded in the reported amount of P5,600,000 Goods in transit, purchased FOB shipping point, P450,000 Goods out on consignment, at selling price of P280,000. Cost is maintained at 60% of selling price. -Freight paid on goods sold, P50,000 Goods sold with a right to return granted to buyers, amount of return is reasonably predictable, P120,000 Merchandise in the hands of traveling salesmen, P40,000 What is the correct amount of inventory as of December 31, 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Cake Corporation's inventory at the end of 2022 is P5,600,000
Included in the amount are the following items:
•Goods displayed in the store, P200,000
Merchandise in transit, sold FOB shipping point, P1,600,000
Goods held on consignment, P340,000
Merchandise in transit to customers, FOB destination, shipped on 29 December 2022. Cost amounted to P560,000. The merchandise reached the customers on 31 December 2022 right before the Company closes its 2022 books
You found out that the following cost of inventories were excluded in the reported amount of P5,600,000
Goods in transit, purchased FOB shipping point, P450,000 Goods out on consignment, at selling price of P280,000. Cost is maintained at 60% of selling
price.
-Freight paid on goods sold, P50,000
Goods sold with a right to return granted to buyers, amount of return is reasonably predictable, P120,000
Merchandise in the hands of traveling salesmen, P40,000
What is the correct amount of inventory as of December 31, 2022?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education