Maroon Company’s inventory at December 31, 2021 amounts to P555,000 based on physical count of goods priced at cost and before any year-end adjustments relating to the following: a. Goods with a selling price of P30,000 were in transit to a customer as of December 31, 2021. Terms 2/10, 2/30, FOB shipping point. The freight cost of P1,400 was prepaid by Maroon. These goods cost P24,000. b. Goods shipped FOB shipping point on December 28,2021 from a supplier to Maroon Company were received on January 5, 2022. The invoice amount is P 25,000. c. Goods shipped from Maroon to Pink , a customer, terms FOB destination, are still in transit at December 31, 2021. The goods with a selling price of P120,500, were received by Pink on January 3, 2022 The company sells goods at a mark up of 25% of cost. d. Goods purchased FOB destination were in transit at December 31,2021. The goods with invoice price of P16,500 were received on January 7, 2022. What amount should Maroon report as inventory in its December 31, 2021 financial statements? Choices: P676,400 P691,400 P692,900 P715,500
Maroon Company’s inventory at December 31, 2021 amounts to P555,000 based on physical count of goods priced at cost and before any year-end adjustments relating to the following:
a. Goods with a selling price of P30,000 were in transit to a customer as of December 31, 2021. Terms 2/10, 2/30, FOB shipping point. The freight cost of P1,400 was prepaid by Maroon. These goods cost P24,000.
b. Goods shipped FOB shipping point on December 28,2021 from a supplier to Maroon Company were received on January 5, 2022. The invoice amount is P 25,000.
c. Goods shipped from Maroon to Pink , a customer, terms FOB destination, are still in transit at December 31, 2021. The goods with a selling price of P120,500, were received by Pink on January 3, 2022 The company sells goods at a mark up of 25% of cost.
d. Goods purchased FOB destination were in transit at December 31,2021. The goods with invoice price of P16,500 were received on January 7, 2022.
What amount should Maroon report as inventory in its December 31, 2021 financial statements?
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