Problem 10-9 (AICPA Adapted) Hero Company reported inventory on December 31, 2020 at P6,000,000 based on a physical count of goods priced at cost, and before any necessary year-end adjustment relating to the following: * Included in the physical count were goods billed to a customer FOB shipping point on December 31, 2020. These goods had a cost of P125,000 and were picked up by the carrier on January 10, 2021. Goods shipped FOB shipping point on December 28, 2020 from a vendor to Hero Company were received on January 4, 2021. The invoice cost was P300,000. What amount should be reported as inventory on December 31, 2020? a. 5,875,000 b. 6,000,000 c. 6,175,000 d. 6,300,000
Problem 10-9 (AICPA Adapted) Hero Company reported inventory on December 31, 2020 at P6,000,000 based on a physical count of goods priced at cost, and before any necessary year-end adjustment relating to the following: * Included in the physical count were goods billed to a customer FOB shipping point on December 31, 2020. These goods had a cost of P125,000 and were picked up by the carrier on January 10, 2021. Goods shipped FOB shipping point on December 28, 2020 from a vendor to Hero Company were received on January 4, 2021. The invoice cost was P300,000. What amount should be reported as inventory on December 31, 2020? a. 5,875,000 b. 6,000,000 c. 6,175,000 d. 6,300,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
Problem 10-9 (AICPA Adapted)
Hero Company reported inventory on December 31, 2020 at
P6,000,000 based on a physical count of goods priced at cost,
and before any necessary year-end adjustment relating to the
following:
* Included in the physical count were goods billed to a
customer FOB shipping point on December 31, 2020.
These goods had a cost of P125,000 and were picked up by
the carrier on January 10, 2021.
Goods shipped FOB shipping point on December 28, 2020
from a vendor to Hero Company were received on January
4, 2021. The invoice cost was P300,000.
What amount should be reported as inventory on December
31, 2020?
a. 5,875,000
b. 6,000,000
c. 6,175,000
d. 6,300,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education