CCC Company took a physical inventory at the end of the year and determined that P2,600,000 of goods were on hand. In addition, the entity determined that P200,000 of goods purchased in transit shipped FOB shipping point were actually received two days after the physical count and that the entity had P300 000 of goods out on consignment

CCC Company took a physical inventory at the end of the year and determined that P2,600,000 of goods were on hand. In addition, the entity determined that P200,000 of goods purchased in transit shipped FOB shipping point were actually received two days after the physical count and that the entity had P300 000 of goods out on consignment

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Description: 5. What amount should be reported as inventory at year-end? CcC Company took a physical inventory at the end of the year and determined that P2,600,000of goods were on hand. In addition, the entity determined that P200,000 of goods purchased intransi

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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5. What amount should be reported as inventory at year-end?

CcC Company took a physical inventory at the end of the year and determined that P2,600,000
of goods were on hand. In addition, the entity determined that P200,000 of goods purchased in
transit shipped FOB shipping point were actually received two days after the physical count and
that the entity had P300,000 of goods out on consignment.

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