The inventory on hand on December 31, 2019 for SM Entertainment is valued at a cost of P3,000,000. The following items wer
The inventory on hand on December 31, 2019 for SM Entertainment is valued at a cost of P3,000,000. The following items were not included in the inventory:
a. Goods purchased in transit shipped FOB destination, with price of P300,000, which includes freight charge of P30,000
b. Goods sold in transit FOB destination with invoice price of P490,000 which includes freight charge of P40,000 to deliver the goods.
c. Goods held on consignment by SM at a sales price of P100,000, excluding a 20% commission on the sales price. Freight paid by SM, P10,000
d. Goods purchased in transit FOB shipping point with invoice of P600,000. Freight cost amounts to P60,000
e. Goods out on consignment with sales price of P300,000. Shipping cost amounts to P30,000 The company sells goods at 150% of cost.
What is the correct inventory on December 31, 2019
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