count 1,750,000 Accounts payable at December 31 1.200,000 Net sales 8,500,000 Additional information A. Included in the physical count were tools billed to a customer FOB shipping point on December 31, 2020. These tools had a cost of P28,000 and were billed at P35,000. The shipment was in loading dock waiting to be picked up by the common carrier. B. Goods were in transit from a vendor to Quarry Company on December 31, 2020. The invoice cost was P 50,000, and the goods were shipped FOB shipping point on December 29, 2020. C. Work in process inventory costing P20,000 was sent to an outside processor for plating on December 30, 2020. D. Tools returned by customers and held pending inspection in the returned goods area on December 31, 2020 were not included in the physical count. On January 5, 2021, the tools costing P26,000 were inspected and returned to inventory. Credit memos totaling P40,000 were issued to the customers on the same date. E. Tools shipped to a customer FOB destination on Dece mber 26, 2020, were in transit on December 31, 2020, and had a cost of P25,000. Upon notification of receipt by the customer on January 5, 2021, Quarry Company issued the sales invoice for P42,000. F. Goods, with an invoice cost of P30,000, received from a vendor at 5:00 P.M. on December 31, 2020 were recorded on a receiving report dated January 2, 2021. The goods were not included in the physical count but the invoice was included in accounts payable on December 31, 2020. G. Goods received from a vendor on D ecember 26, 2020 were included in the physical count. However, the related P60,000 vendor invoice was not included in accounts payable on December 31, 2020 because the accounts payable copy of the receiving report was lost. H. On January 10, 2021, a monthly freight bill in the amount of P20,000 was received. The bill specifically related to merchandise purchased in December 31, 2020, one - half of which was still in the inventory on December 31, 2020. The freight charge was not included in either the i nventory or in accounts payable on December 31, 2020. 1 What is the correct amount of inventory? a. 1,883,000 b. 1,911,000 c. 1,885,000 d. 1,925,000

count 1,750,000 Accounts payable at December 31 1.200,000 Net sales 8,500,000 Additional information A. Included in the physical count were tools billed to a customer FOB shipping point on December 31, 2020. These tools had a cost of P28,000 and were billed at P35,000. The shipment was in loading dock waiting to be picked up by the common carrier. B. Goods were in transit from a vendor to Quarry Company on December 31, 2020. The invoice cost was P 50,000, and the goods were shipped FOB shipping point on December 29, 2020. C. Work in process inventory costing P20,000 was sent to an outside processor for plating on December 30, 2020. D. Tools returned by customers and held pending inspection in the returned goods area on December 31, 2020 were not included in the physical count. On January 5, 2021, the tools costing P26,000 were inspected and returned to inventory. Credit memos totaling P40,000 were issued to the customers on the same date. E. Tools shipped to a customer FOB destination on Dece mber 26, 2020, were in transit on December 31, 2020, and had a cost of P25,000. Upon notification of receipt by the customer on January 5, 2021, Quarry Company issued the sales invoice for P42,000. F. Goods, with an invoice cost of P30,000, received from a vendor at 5:00 P.M. on December 31, 2020 were recorded on a receiving report dated January 2, 2021. The goods were not included in the physical count but the invoice was included in accounts payable on December 31, 2020. G. Goods received from a vendor on D ecember 26, 2020 were included in the physical count. However, the related P60,000 vendor invoice was not included in accounts payable on December 31, 2020 because the accounts payable copy of the receiving report was lost. H. On January 10, 2021, a monthly freight bill in the amount of P20,000 was received. The bill specifically related to merchandise purchased in December 31, 2020, one - half of which was still in the inventory on December 31, 2020. The freight charge was not included in either the i nventory or in accounts payable on December 31, 2020. 1 What is the correct amount of inventory? a. 1,883,000 b. 1,911,000 c. 1,885,000 d. 1,925,000

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

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...

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Question

Quarry Company, a manufacturer of small tools, provided the following information for the year

ended December 31, 2020.

Inventory at December 31 based

on physical count

1,750,000

Accounts payable at December 31

1.200,000

Net sales

8,500,000

Additional information

Included in the physical count were tools billed to a customer FOB shipping point on

December 31, 2020. These tools had a cost of P28,000

and were billed at P35,000.

The shipment was in loading dock waiting to be picked up by the common carrier.

Goods were in transit from a vendor to Quarry Company on December 31, 2020.

The invoice cost was P

50,000, and the goods were shipped FOB

shipping point on

December 29, 2020.

Work in process inventory costing P20,000 was sent to an outside processor for plating

on December 30, 2020.

Tools returned by customers and held pending inspection in the returned goods area on

December 31, 2020 were

not included in the physical count.

On January 5, 2021, the tools costing P26,000 were inspected and returned to inventory.

Credit memos totaling P40,000 were issued to the customers on the same date.

Tools shipped to a customer FOB destination on Dece

mber 26, 2020, were in transit on

December 31, 2020, and had a cost of P25,000.

Upon notification of receipt by the customer on January 5, 2021, Quarry Company issued

the sales invoice for P42,000.

Goods, with an invoice cost of P30,000, received from a

vendor at 5:00 P.M. on

December 31, 2020 were recorded on a receiving report dated January 2, 2021.

The goods were not included in the physical count but the invoice was included in

accounts payable on December 31, 2020.

Goods received from a vendor on D

ecember 26, 2020 were included in the physical

count.

However, the related P60,000 vendor invoice was not included in accounts payable on

December 31, 2020 because the accounts payable copy of the receiving report was lost.

On January 10, 2021, a

monthly freight bill in the amount of P20,000

was received. The

bill specifically related to merchandise purchased in December 31, 2020, one

half of

which was still in the inventory on December 31, 2020.

The freight charge was not included in either the i

nventory or in accounts payable on

December 31, 2020.

1 What is the correct amount of inventory?

1,883,000

1,911,000

1,885,000

1,925,000

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