The following information applies to Alberta, Inc for 2020: Products acquired for resale, P400,000; Products acquired for use in the business, P1,000,000; Freight in, P10,000; Freight out, P5,000. How much is Alberta’s inventoriable cost of inventory? The unadjusted inventory of Kalayaan Company at December 31, 2020 was P6,000,000. Other information follows: How much should Kalayaan report as inventory in its December 31, 2020 balance sheet?
The following information applies to Alberta, Inc for 2020: Products acquired for resale, P400,000; Products acquired for use in the business, P1,000,000; Freight in, P10,000; Freight out, P5,000. How much is Alberta’s inventoriable cost of inventory? The unadjusted inventory of Kalayaan Company at December 31, 2020 was P6,000,000. Other information follows: How much should Kalayaan report as inventory in its December 31, 2020 balance sheet?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information applies to Alberta, Inc for 2020: Products acquired for resale, P400,000; Products acquired for use in the business, P1,000,000; Freight in, P10,000; Freight out, P5,000. How much is Alberta’s inventoriable cost of inventory?
The unadjusted inventory of Kalayaan Company at December 31, 2020 was P6,000,000. Other information follows:
How much should Kalayaan report as inventory in its December 31, 2020
Transcribed Image Text:a. Goods were received and recorded on January 2, 2021 with cost of
P360,000, Information revealed that the term of the shipment is FOB
shipping point and these goods were shipped on December 29, 2020.
b. Merchandise in the warehouse costing P480,000 was billed to the
customer FOB shipping point on December 29, 2020. These were
excluded from inventory but these were shipped on January 3, 2021.
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