Matcha Company asks you to review its Dec. 31, 2022, inventory values and prepare the necessary adjustments to the books. The following information is given to you. • Matcha uses the periodic method of recording inventory. A physical count reveals P2,348,900 inventory on hand at Dec. 31, 2022. •Not included in the physical count of inventory is P134,200 of merchandise purchased on Dec. 15 from Standing. This merchandise was shipped F.O.B. shipping point on Dec. 29 and arrived in Jan. The invoice arrived and was recorded on Dec. 31. • Included in inventory is merchandise sold to Oval on Dec. 30, O.B. destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for P128,000 on Dec. 31. The merchandise cost P73,500, and Oval received it on Jan. 3. • Included in inventory was merchandise received from Owl on Dec. 31 with an nvoice price of P156,300. The merchandise was shipped F.O.B destination. The invoice, which has not yet arrived, has not been recorded. •Not included in inventory is P85,400 of merchandise purchased from Oxygen Industries. The merchandise was received on Dec. 31 after the inventory had been counted. The invoice was received and recorded on Dec. 30. • Included in inventory is merchandise sold to Kemp F.O.B. shipping point. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale for P189,000 on Dec. 31. The cost of this merchandise was P105,200, and Kemp received the merchandise on Jan. 5. • Excluded from inventory was carton labeled "Please accept for credit." This carton contains merchandise costing P15,000 which had been sold to a customer for P25,000. No entry had been made to the books to reflect the return, but none of the returned merchandise seemed damaged. The adjusted inventory cost of Matcha Company at December 31, 2022 should be?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Matcha Company asks you to review its Dec. 31, 2022, inventory values and prepare the necessary adjustments to the books. The following information is given to you. • Matcha uses the periodic method of recording inventory. A physical count reveals P2,348,900 inventory on hand at Dec. 31, 2022. •Not included in the physical count of inventory is P134,200 of merchandise purchased on Dec. 15 from Standing. This merchandise was shipped F.O.B. shipping point on Dec. 29 and arrived in Jan. The invoice arrived and was recorded on Dec. 31. • Included in inventory is merchandise sold to Oval on Dec. 30, O.B. destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for P128,000 on Dec. 31. The merchandise cost P73,500, and Oval received it on Jan. 3. • Included in inventory was merchandise received from Owl on Dec. 31 with an nvoice price of P156,300. The merchandise was shipped F.O.B destination. The invoice, which has not yet arrived, has not been recorded. •Not included in inventory is P85,400 of merchandise purchased from Oxygen Industries. The merchandise was received on Dec. 31 after the inventory had been counted. The invoice was received and recorded on Dec. 30. • Included in inventory is merchandise sold to Kemp F.O.B. shipping point. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale for P189,000 on Dec. 31. The cost of this merchandise was P105,200, and Kemp received the merchandise on Jan. 5. • Excluded from inventory was carton labeled "Please accept for credit." This carton contains merchandise costing P15,000 which had been sold to a customer for P25,000. No entry had been made to the books to reflect the return, but none of the returned merchandise seemed damaged. The adjusted inventory cost of Matcha Company at December 31, 2022 should be?

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