The Cherry Company’s physical inventory on December 31, 2021 showed that merchandise with a cost of P364,000 was on hand at that date. Excluded from this amount are the following items: • Merchandise costing P30,000 held by Cherry Company on consignment. • Merchandise costing P45,000 shipped FOB shipping point to a customer on December 29, 2021. The goods are expected to be received by the customer on January 4, 2022. • Merchandise costing P62,000 shipped FOB destination to a customer on December 31, 2021. The goods were expected to be received by the customer on January 6, 2022. • Merchandise costing P78,000 shipped by a vendor FOB destination on December 30, 2021 and received by Cherry Company on January 5, 2022. • Merchandise costing P54,000 shipped by a vendor FOB seller on December 31, 2021 and received by Cherry Company on January 3, 2022. What is the correct inventory that should appear in Cherry Company’s statement of financial position at December 31, 2021? a. 603,000 b. 504,000 c. 487,000 d. 480,000
The Cherry Company’s physical inventory on December 31, 2021 showed that merchandise with a cost of P364,000 was on hand at that date. Excluded from this amount are the following items: • Merchandise costing P30,000 held by Cherry Company on consignment. • Merchandise costing P45,000 shipped FOB shipping point to a customer on December 29, 2021. The goods are expected to be received by the customer on January 4, 2022. • Merchandise costing P62,000 shipped FOB destination to a customer on December 31, 2021. The goods were expected to be received by the customer on January 6, 2022. • Merchandise costing P78,000 shipped by a vendor FOB destination on December 30, 2021 and received by Cherry Company on January 5, 2022. • Merchandise costing P54,000 shipped by a vendor FOB seller on December 31, 2021 and received by Cherry Company on January 3, 2022. What is the correct inventory that should appear in Cherry Company’s statement of financial position at December 31, 2021? a. 603,000 b. 504,000 c. 487,000 d. 480,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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22. The Cherry Company’s physical inventory on December 31, 2021 showed that merchandise with a cost of P364,000 was on hand at that date. Excluded from this amount are the following items:
• Merchandise costing P30,000 held by Cherry Company on consignment.
• Merchandise costing P45,000 shipped FOB shipping point to a customer on December 29, 2021. The goods are expected to be received by the customer on January 4, 2022.
• Merchandise costing P62,000 shipped FOB destination to a customer on December 31, 2021. The goods were expected to be received by the customer on January 6, 2022.
• Merchandise costing P78,000 shipped by a vendor FOB destination on December 30, 2021 and received by Cherry Company on January 5, 2022.
• Merchandise costing P54,000 shipped by a vendor FOB seller on December 31, 2021 and received by Cherry Company on January 3, 2022.
What is the correct inventory that should appear in Cherry Company’sstatement of financial position at December 31, 2021?
• Merchandise costing P30,000 held by Cherry Company on consignment.
• Merchandise costing P45,000 shipped FOB shipping point to a customer on December 29, 2021. The goods are expected to be received by the customer on January 4, 2022.
• Merchandise costing P62,000 shipped FOB destination to a customer on December 31, 2021. The goods were expected to be received by the customer on January 6, 2022.
• Merchandise costing P78,000 shipped by a vendor FOB destination on December 30, 2021 and received by Cherry Company on January 5, 2022.
• Merchandise costing P54,000 shipped by a vendor FOB seller on December 31, 2021 and received by Cherry Company on January 3, 2022.
What is the correct inventory that should appear in Cherry Company’s
a. 603,000
b. 504,000
c. 487,000
d. 480,000
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