How much is the adjusted ending inventory of King Company?
Problem 10
The inventory count of King Company on December 31, 2020 was P1,350,000 and the following
additional information are available:
Goods on consignment from Frodo Company amounting to P50,000 was included in the
count.
Customized item for Vishnu costing P100,000 was included in the physical count. Said
item remains to be approved by Vishnu.
Goods marked “RESERVED FOR ZEUS” found in the shipping section was not included in
the count because King is waiting for LBC to pick it up. Its selling price is P120,000 and
its gross profit is 20% of selling price.
Goods on consignment to Belle Company with sales price of P30,000 which is 150% of
cost was excluded from count.
Goods sold to Kong Company Ex-Ship is on-board the carrier vessel as of the end of the
year. They cost P120,000 including freight charges of P20,000 and were excluded from
the ending inventory.
Purchased goods from Manila FOB Shipping Point is on transit worth P60,000 and freight
of P10,000 were excluded from the physical count.
How much is the adjusted ending inventory of King Company?
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