Vogts Company sells TVs. The perpetual inventory was stated as P 28,500 on the books at December 31, 2020. At the close of the year, a new approach for compiling inventory was used and apparently a satisfactory cut-off for preparation of financial statements was not made. Some events that occurred are as follows. TVs shipped to a customer January 2, 2021 costing P 5,000 were included in inventory at December 31, 2020. The sale was recorded in 2021. TVs costing P 12,000 received December 30, 2020, were recorded as received on January 2, 2021. TVs received during 2020 costing P 4,600 were recorded twice in the inventory account. TVs shipped to a customer December 28, 2020, f.o.b. shipping point, which cost P 10,000, were not received by the customer until January 2021. The TVs were included in the ending inventory. TVs on hand that cost P 6,100 were never recorded on the books. Instructions Compute the correct inventory at December 31, 2020.
Vogts Company sells TVs. The perpetual inventory was stated as P 28,500 on the books at December 31, 2020. At the close of the year, a new approach for compiling inventory was used and apparently a satisfactory cut-off for preparation of financial statements was not made. Some events that occurred are as follows. TVs shipped to a customer January 2, 2021 costing P 5,000 were included in inventory at December 31, 2020. The sale was recorded in 2021. TVs costing P 12,000 received December 30, 2020, were recorded as received on January 2, 2021. TVs received during 2020 costing P 4,600 were recorded twice in the inventory account. TVs shipped to a customer December 28, 2020, f.o.b. shipping point, which cost P 10,000, were not received by the customer until January 2021. The TVs were included in the ending inventory. TVs on hand that cost P 6,100 were never recorded on the books. Instructions Compute the correct inventory at December 31, 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Vogts Company sells TVs. The perpetual inventory was stated as P 28,500 on the books at December 31, 2020. At the close of the year, a new approach for compiling inventory was used and apparently a satisfactory cut-off for preparation of financial statements was not made. Some events that occurred are as follows.
- TVs shipped to a customer January 2, 2021 costing P 5,000 were included in inventory at December 31, 2020. The sale was recorded in 2021.
- TVs costing P 12,000 received December 30, 2020, were recorded as received on January 2, 2021.
- TVs received during 2020 costing P 4,600 were recorded twice in the inventory account.
- TVs shipped to a customer December 28, 2020, f.o.b. shipping point, which cost P 10,000, were not received by the customer until January 2021. The TVs were included in the ending inventory.
- TVs on hand that cost P 6,100 were never recorded on the books.
Instructions
Compute the correct inventory at December 31, 2020.
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