JC Corporation is in the process of adjusting and closing the books and preparing financial statements at the end of the year, December 31, 2014. One item of concern is in the ending inventory of goods on hand. After the count had been completed, additional items not included in the storeroom count were listed for consideration. You are to consider each item and decide whether it should be included in the ending inventory for 2014.
JC Corporation is in the process of adjusting and closing the books and preparing financial statements at the end of the year, December 31, 2014. One item of concern is in the ending inventory of goods on hand. After the count had been completed, additional items not included in the storeroom count were listed for consideration. You are to consider each item and decide whether it should be included in the ending inventory for 2014.
Cost Merchandise
Initial inventory valuation based on a count of all goods on hand only, unless otherwise noted P 200,000
(a) Goods in a back room of the store were not included in the storeroom count at purchase cost. They are damaged and will be disposed of as salvage. P 1,400
(b) Goods shipped on December 30, FOB destination, invoice mailed to our customer, delivery date January 5, 2015. 800
(c) Goods currently being used for window displays (not damaged); were not included in the count. 1,800
(d) Goods in receiving section that was shipped to JC on order. JC has refused to accept thembecause of their damaged condition. They will be picked up on January 20 by the vendor. P2,000
(e) Goods shipped to customer on December 30, FOB shipping point.1,000
(f) An invoice has been received for goods ordered from a supplier; the goods had been shipped, but not yet received (JC Corporation pays the freight). 600
(g) Goods held by JC on consignment from PJ Company, not included in the count. P1,200
(h) Items in one corner of the storeroom were not included in the count because they had been set aside for a sales order to be shipped on January 15. P400
(i) Goods on counters and on shelves in sales areas. P 180,000
(j) Items in the receiving section of the storeroom were excluded from the count because they had been sold to customers and then returned (in resalable condition). 200
What is the Total - Correct inventory valuation at December 31, 2014 ?
is 381,800 correct?
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