Morena Co. uses the calendar year basis of accounting. The following date were found during your audit. Goods in transit shipped FOB Destination by a supplier in the amount of P20,000 had been excluded from the inventory, and further testing revealed that the purchase had been recorded. Goods costing P1,000 had been received, included in the inventory and recorded as a purchase. However, upon inspection the goods were found to be defective and would be immediately returned. Materials costing P55,000 and billed on December 30 at a selling price of P64,000 had been segregated in the warehouse for shipment to a customer. the material had been excluded from inventory as a signed purchase order had been received from the customer. Term, FOB Destination. Goods costing P41,000 was out on consignment with JRS. Since the monthly statement from JRS listed those materials as on hand, the items had been excluded from the final inventory and invoiced on Dec 31 at P16,000. The sale of P30,000 worth of materials and costing P23,000 had been shipped FOB Destination on Dec 30. Shipping time usually takes 5-7 days. However, the inventory was found to be excluded in the final inventory. Goods costing P20,000 and selling P28,000 had been segregated but nit shipped at Dec. 31, and were not included in the inventory. A review of the customer’s purchase order set forth terms as FOB destination. The sale had not been recorded. Your client has an invoice from a supplier, terms FOB destination and the goods had not arrived as yet. However, these materials costing P34,000 had been included in the inventory count when the purchase invoice arrived and included in the balance below. Merchandise costing P4,000 had been recorded as a purchase but not included in inventory. Terms of shipment are FOB shipping point according to the supplier’s invoice which was received on Dec. 31. Further inspection revealed the following account balances as of December 31. Inventory P220,000 Accounts receivable 116,000 Accounts Payable 138,00 Sales 1,010,000 Purchases 640,000 Net Income 102,000 How much is the correct Inventory as of December 31?

Morena Co. uses the calendar year basis of accounting. The following date were found during your audit. Goods in transit shipped FOB Destination by a supplier in the amount of P20,000 had been excluded from the inventory, and further testing revealed that the purchase had been recorded. Goods costing P1,000 had been received, included in the inventory and recorded as a purchase. However, upon inspection the goods were found to be defective and would be immediately returned. Materials costing P55,000 and billed on December 30 at a selling price of P64,000 had been segregated in the warehouse for shipment to a customer. the material had been excluded from inventory as a signed purchase order had been received from the customer. Term, FOB Destination. Goods costing P41,000 was out on consignment with JRS. Since the monthly statement from JRS listed those materials as on hand, the items had been excluded from the final inventory and invoiced on Dec 31 at P16,000. The sale of P30,000 worth of materials and costing P23,000 had been shipped FOB Destination on Dec 30. Shipping time usually takes 5-7 days. However, the inventory was found to be excluded in the final inventory. Goods costing P20,000 and selling P28,000 had been segregated but nit shipped at Dec. 31, and were not included in the inventory. A review of the customer’s purchase order set forth terms as FOB destination. The sale had not been recorded. Your client has an invoice from a supplier, terms FOB destination and the goods had not arrived as yet. However, these materials costing P34,000 had been included in the inventory count when the purchase invoice arrived and included in the balance below. Merchandise costing P4,000 had been recorded as a purchase but not included in inventory. Terms of shipment are FOB shipping point according to the supplier’s invoice which was received on Dec. 31. Further inspection revealed the following account balances as of December 31. Inventory P220,000 Accounts receivable 116,000 Accounts Payable 138,00 Sales 1,010,000 Purchases 640,000 Net Income 102,000 How much is the correct Inventory as of December 31?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Morena Co. uses the calendar year basis of accounting. The following date were found during your audit.

Goods in transit shipped FOB Destination by a supplier in the amount of P20,000 had been excluded from the inventory, and further testing revealed that the purchase had been recorded.
Goods costing P1,000 had been received, included in the inventory and recorded as a purchase. However, upon inspection the goods were found to be defective and would be immediately returned.
Materials costing P55,000 and billed on December 30 at a selling price of P64,000 had been segregated in the warehouse for shipment to a customer. the material had been excluded from inventory as a signed purchase order had been received from the customer. Term, FOB Destination.
Goods costing P41,000 was out on consignment with JRS. Since the monthly statement from JRS listed those materials as on hand, the items had been excluded from the final inventory and invoiced on Dec 31 at P16,000.
The sale of P30,000 worth of materials and costing P23,000 had been shipped FOB Destination on Dec 30. Shipping time usually takes 5-7 days. However, the inventory was found to be excluded in the final inventory.
Goods costing P20,000 and selling P28,000 had been segregated but nit shipped at Dec. 31, and were not included in the inventory. A review of the customer’s purchase order set forth terms as FOB destination. The sale had not been recorded.
Your client has an invoice from a supplier, terms FOB destination and the goods had not arrived as yet. However, these materials costing P34,000 had been included in the inventory count when the purchase invoice arrived and included in the balance below.
Merchandise costing P4,000 had been recorded as a purchase but not included in inventory. Terms of shipment are FOB shipping point according to the supplier’s invoice which was received on Dec. 31.

Further inspection revealed the following account balances as of December 31.

Inventory P220,000

Accounts receivable 116,000

Accounts Payable 138,00

Sales 1,010,000

Purchases 640,000

Net Income 102,000

How much is the correct Inventory as of December 31?

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