Corporation is preparing the 2020 year-end financial statements. Prior to any adjustments, inventory is valued at 6,000,000. • Goods costing P250,000 were received from a vendor on January 5, 2021. The related invoice was received and recorded on January 12, 2021. The goods were shipped December 31, 2020 FOB Shipping point. • Goods costing P850,000 were shipped on December 31, 2020 to a customer FOB shipping point. The goods were included in ending inventory for 2020 even though the sale was recoded in 2020. • A P350,000 shipment of goods to a customer on December 31, 2020 FOB destination was not included in the year-end inventory. The goods cost P260,000 and were delivered to the customer on January 15, 2021. The sale was properly recorded in 2021. • An invoice for goods costing P550,000 was received and recorded as purchase on December 31, 2020. The related goods shipped FAS were in transit on December 31, 2020 and received on January 5, 2021 and were not included in the physical inventory. • A P1,050,000 shipment of goods to a customer on December 30, 2020 FOB Destination was recorded as a sale in 2020. The goods costing P850,000 and delivered to the customer on January 15, 2021 were not in
Corporation is preparing the 2020 year-end financial statements. Prior to any adjustments, inventory is valued at 6,000,000. • Goods costing P250,000 were received from a vendor on January 5, 2021. The related invoice was received and recorded on January 12, 2021. The goods were shipped December 31, 2020 FOB Shipping point. • Goods costing P850,000 were shipped on December 31, 2020 to a customer FOB shipping point. The goods were included in ending inventory for 2020 even though the sale was recoded in 2020. • A P350,000 shipment of goods to a customer on December 31, 2020 FOB destination was not included in the year-end inventory. The goods cost P260,000 and were delivered to the customer on January 15, 2021. The sale was properly recorded in 2021. • An invoice for goods costing P550,000 was received and recorded as purchase on December 31, 2020. The related goods shipped FAS were in transit on December 31, 2020 and received on January 5, 2021 and were not included in the physical inventory. • A P1,050,000 shipment of goods to a customer on December 30, 2020 FOB Destination was recorded as a sale in 2020. The goods costing P850,000 and delivered to the customer on January 15, 2021 were not in
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Corporation is preparing the 2020 year-end financial statements. Prior to any adjustments, inventory is valued at 6,000,000.
• Goods costing P250,000 were received from a vendor on January 5, 2021. The related invoice was received and recorded on January 12, 2021. The goods were shipped December 31, 2020 FOB Shipping point.
• Goods costing P850,000 were shipped on December 31, 2020 to a customer FOB shipping point. The goods were included in ending inventory for 2020 even though the sale was recoded in 2020.
• A P350,000 shipment of goods to a customer on December 31, 2020 FOB destination was not included in the year-end inventory. The goods cost P260,000 and were delivered to the customer on January 15, 2021. The sale was properly recorded in 2021.
• An invoice for goods costing P550,000 was received and recorded as purchase on December 31, 2020. The related goods shipped FAS were in transit on December 31, 2020 and received on January 5, 2021 and were not included in the physical inventory.
• A P1,050,000 shipment of goods to a customer on December 30, 2020 FOB Destination was recorded as a sale in 2020. The goods costing P850,000 and delivered to the customer on January 15, 2021 were not included in 2020 ending inventory.
13. What is the correct inventory on December 31, 2020?
a. 7,060,000 c. 8,600,000
b. 6,510,000 d. 6,800,000
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