compute the correct amount of inventory to be reported in the statement of financial position on December 31, 2013.
Shindig Company is preparing its 2013 year-end financial statements. prior to any adjustments, inventory is valued at P7,600,000. The following information has been found relating to certain inventory transactions
Goods valued at P 1,000,000 are on consignment with a customer. These goods are not included in the year-end inventory figure.
Goods costing P250,000 were received from a vendor on January 5, 2014. The related invoice was received and recorded on January 12, 2014. The goods were shipped on December 31, 2013, terms FOB shipping point.
Goods costing P 850,000 were shipped on December 31, 2013, and were delivered to the customer on January 2, 2014. The terms of the invoice were FOB shipping point. The goods were included in ending inventory for 2013 even though the sale was recorded in 2013.
A P350,000 shipment of goods to a customer on December 31, 2013 terms FOB destination, was not included in the year-end inventory. The goods cost P260,00 and were delivered to the customer on January 8, 2014. the sale was properly recorded in 2014.
An invoice for goods costing P350,000 was received and recorded as a purchase on December 31, 2013. The related goods, shipped FAS were in transit on December 31, 2013 and received on January 2, 2014 and were not included in the physical inventory.
Goods valued at P 650,000 are on consignment from a vendor. There goods are not included in the year-end inventory figure
A P1,050,000 shipment of goods to a customer on December 30, 2013, terms FOB destination was recorded as a sale in 2013. The goods, costing P840,000 and delivered to the customer on Jaunuary 6, 2014, were not included in 2013 ending inventory
Required:
compute the correct amount of inventory to be reported in the
Step by step
Solved in 2 steps with 2 images
