Hall Company’s inventory at December 31, 2019 was P1,500,000 based on a physical count of goods priced at cost, and before any necessary year-end adjustment relating to the following: Included in the physical count were goods billed to a customer FOB shipping point on December 31, 2019. These goods had a cost of P30,000 and were picked up by the carrier on January 10, 2020. Goods shipped FOB destination on December 28, 2019 from a vendor to Hall were received on January 4, 2020. The invoice cost was P50,000. What amount should Hall report as inventory on its December 31, 2019 balance sheet? Choices: P1,480,000 P1,470,000 P1,550,000 P1,500,000
Hall Company’s inventory at December 31, 2019 was P1,500,000 based on a physical count of goods priced at cost, and before any necessary year-end adjustment relating to the following: Included in the physical count were goods billed to a customer FOB shipping point on December 31, 2019. These goods had a cost of P30,000 and were picked up by the carrier on January 10, 2020. Goods shipped FOB destination on December 28, 2019 from a vendor to Hall were received on January 4, 2020. The invoice cost was P50,000. What amount should Hall report as inventory on its December 31, 2019 balance sheet? Choices: P1,480,000 P1,470,000 P1,550,000 P1,500,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Hall Company’s inventory at December 31, 2019 was P1,500,000 based on a physical count of goods priced at cost, and before any necessary year-end adjustment relating to the following: Included in the physical count were goods billed to a customer FOB shipping point on December 31, 2019. These goods had a cost of P30,000 and were picked up by the carrier on January 10, 2020. Goods shipped FOB destination on December 28, 2019 from a vendor to Hall were received on January 4, 2020. The invoice cost was P50,000. What amount should Hall report as inventory on its December 31, 2019
Choices:
P1,480,000
P1,470,000
P1,550,000
P1,500,000
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