Problem 10-16 (AICPA Adapted) Reverend Company condacted a physical count on Decemi 31, 2020 which revesled merchandise with a total cot Pn,000,000. However, farther inveatiestien revealed that the followi itema were exeluded from the count Goods sold to a customer which are being held for t customer to call st the customer's convenience with a oe P200.000 *A packing case containing a product costing P500,000 w atanding in the shipping room when the physie inventory was taken The product w not included in the inventory because was marked "hold for shipping instructions". The investigatisn revenled that the customer's order wi dated December 28, 2020, but that the case was shippe and the customer billed on January 5, 2021 A special machine coeting P250,000 fabricated to orde fora customer was finished and speeificall segregated at the back part of the shipping room c December 31, 2020. The customer was billed en that date and the machim was ecluded from inventerry although it was shippe on January 5, 2021 * Gooda in peocess costing P00,000 held by an outsa procensor for further * Goode costing P50,000 shipped by a vendor FOB sele n December 31, 2020 and received by the entity o January 10, 2021 What is the cerrect amount of inventory that should be reported on December 31, 2000 prooesning A 5,500,000 b5.550,000 E,850,000 d. 5,800,000
Problem 10-16 (AICPA Adapted) Reverend Company condacted a physical count on Decemi 31, 2020 which revesled merchandise with a total cot Pn,000,000. However, farther inveatiestien revealed that the followi itema were exeluded from the count Goods sold to a customer which are being held for t customer to call st the customer's convenience with a oe P200.000 *A packing case containing a product costing P500,000 w atanding in the shipping room when the physie inventory was taken The product w not included in the inventory because was marked "hold for shipping instructions". The investigatisn revenled that the customer's order wi dated December 28, 2020, but that the case was shippe and the customer billed on January 5, 2021 A special machine coeting P250,000 fabricated to orde fora customer was finished and speeificall segregated at the back part of the shipping room c December 31, 2020. The customer was billed en that date and the machim was ecluded from inventerry although it was shippe on January 5, 2021 * Gooda in peocess costing P00,000 held by an outsa procensor for further * Goode costing P50,000 shipped by a vendor FOB sele n December 31, 2020 and received by the entity o January 10, 2021 What is the cerrect amount of inventory that should be reported on December 31, 2000 prooesning A 5,500,000 b5.550,000 E,850,000 d. 5,800,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Problem 10-16 (AICPA Adapted)
Reverend Company condacted a physical count on Decemi
31, 2020 which revesled merchandise with a total cot
Pn,000,000.
However, farther inveatiestien revealed that the followi
itema were exeluded from the count
Goods sold to a customer which are being held for t
customer to call st the customer's convenience with a oe
P200.000
*A packing case containing a product costing P500,000 w
atanding in the shipping room when the physie
inventory was taken
The product w not included in the inventory because
was marked "hold for shipping instructions".
The investigatisn revenled that the customer's order wi
dated December 28, 2020, but that the case was shippe
and the customer billed on January 5, 2021
A special machine coeting P250,000 fabricated to orde
fora customer was finished and speeificall
segregated at the back part of the shipping room c
December 31, 2020.
The customer was billed en that date and the machim
was ecluded from inventerry although it was shippe
on January 5, 2021
* Gooda in peocess costing P00,000 held by an outsa
procensor for further
* Goode costing P50,000 shipped by a vendor FOB sele
n December 31, 2020 and received by the entity o
January 10, 2021
What is the cerrect amount of inventory that should be
reported on December 31, 2000
prooesning
A 5,500,000
b5.550,000
E,850,000
d. 5,800,000
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