Problem 10-25 (AICPA Adapted) Reverend Company conducteda physical count on December a1 2021 which revealed merchandise with a total coat of P5,000,000. However, further investigation revealed that the following items were excluded from the count Goods sold to a customer which are being held for the customer to call at the customer's convenience with a cost of P200,000. * A packing case containing a product costing P500,000 was atanding in the shipping room when the phyaieal inventory was taken. The product was not included in the inventory because it was marked "hold for shipping instructions The investigation revealed that the customer's order was dated December 28, 2021, but that the case waa shipped and the customer billed on January 5, 2022 A special machine costing P250,000 fabricated to order for a customer was finished and specifically segregated at the back part of the shipping room on December 31, 2021. The customer was billed on that date and the machine was excluded from inventory although it was shipped on January 5, 2022. Goods in process costing P300,000 held by an outside processor for further processing. Goods costing P50,000 shipped by a vendor FOB seller on December 31, 2021 and received by the entity on January 10, 2022. What amount of inventory should be reported on December 31, 2021? a. 5,500,000 b. 5,550,000 e. 5,850,000 d. 5,800,000
Problem 10-25 (AICPA Adapted) Reverend Company conducteda physical count on December a1 2021 which revealed merchandise with a total coat of P5,000,000. However, further investigation revealed that the following items were excluded from the count Goods sold to a customer which are being held for the customer to call at the customer's convenience with a cost of P200,000. * A packing case containing a product costing P500,000 was atanding in the shipping room when the phyaieal inventory was taken. The product was not included in the inventory because it was marked "hold for shipping instructions The investigation revealed that the customer's order was dated December 28, 2021, but that the case waa shipped and the customer billed on January 5, 2022 A special machine costing P250,000 fabricated to order for a customer was finished and specifically segregated at the back part of the shipping room on December 31, 2021. The customer was billed on that date and the machine was excluded from inventory although it was shipped on January 5, 2022. Goods in process costing P300,000 held by an outside processor for further processing. Goods costing P50,000 shipped by a vendor FOB seller on December 31, 2021 and received by the entity on January 10, 2022. What amount of inventory should be reported on December 31, 2021? a. 5,500,000 b. 5,550,000 e. 5,850,000 d. 5,800,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 10-25 (AICPA Adapted)
Reverend Company conducteda physical count on December
31. 2021 which revenled merchandise with ia total coat of
P5,000,000.
However, further investigation revealed that the following
items were excluded from the count
Goods sold to a customer which are being held for the
customer to call at the customer's convenience with a cost
of P200,000.
A packing eas containing a product costing P500,000 wasa
atanding in the shipping room when the physieal
inventory was taken
The product was not included in the inventory because it
was marked "hold for shipping instructiona"
The investigation revealed that the customer's order waa
dated December 28, 2021, but that the case was ahipped
and the customer billed on January 5, 2022
A special machine costing P250,000 fabricated to order
for a customer was finished and specifically
segregated at the back part of the ahipping room on
December 31, 2021.
The customer was billed on that date and the machine
was excluded from inventory although it was shipped
on January 5, 2022.
Goods in process costing P300,000 held by an outside
processor for further procesing.
Goods costing P50,000 shipped by a vendor FOB seller
on December 31, 2021 and received by the entity on
January 10, 2022.
What amount of inventory should be reported on December
31, 2021?
n. 5,500,000
b. 5,550,000
e. 5,850,000
d. 5,800,000
917
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