What amount should be reported as inventory on December 31, 2021? Fundador Company reported that inventory on December 31, 2021, is at P375,000 based on a physical count priced at its cost and before any adjustments for the following: Merchandise amounting P60,000 shipped FOB shipping point from a vendor on December 31, 2021, was received on January 7, 2021. Merchandise amounting P22,000 shipped FOB destination from a vendor on December 28, 2021, was received on January 6, 2021. Merchandise amounting P38,000 shipped to a customer FOB destination on December 28, 2021, arrived at the customer location on January 4, 2022. Merchandise amounting P12,000 was being held on consignment by Alfred Company, a consignee of Fundador Company. Merchandise sent to sales agency of the company for P4,000 has been included as part of the inventory figure per physical count on December 31, 2021.

What amount should be reported as inventory on December 31, 2021? Fundador Company reported that inventory on December 31, 2021, is at P375,000 based on a physical count priced at its cost and before any adjustments for the following: Merchandise amounting P60,000 shipped FOB shipping point from a vendor on December 31, 2021, was received on January 7, 2021. Merchandise amounting P22,000 shipped FOB destination from a vendor on December 28, 2021, was received on January 6, 2021. Merchandise amounting P38,000 shipped to a customer FOB destination on December 28, 2021, arrived at the customer location on January 4, 2022. Merchandise amounting P12,000 was being held on consignment by Alfred Company, a consignee of Fundador Company. Merchandise sent to sales agency of the company for P4,000 has been included as part of the inventory figure per physical count on December 31, 2021.

Name: What amount should be reportedas inventory on December 31,2021?Fundad
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: What amount should be reportedas inventory on December 31,2021?Fundador Company reported that inventory on December 31, 2021, is at P375,000 based on a physicalcount priced at its cost and before any adjustments for the following:Merchandise amounti

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The December 31, 2018, inventory of Tog Company, based on a physical count, was determined to be $450,000.Included in that count was a shipment of goods received from a supplier at the end of the month that cost$50,000. The purchase was recorded and paid for in 2019. Another supplier shipment costing $20,000 was correctly recorded as a purchase in 2018. However, the merchandise, shipped FOB shipping point, was not receiveduntil 2019 and was incorrectly omitted from the physical count. A third purchase, shipped from a supplierFOB shipping point on December 28, 2018, did not arrive until January 3, 2019. The merchandise, which cost$80,000, was not included in the physical count and the purchase has not yet been recorded.The company uses a periodic inventory system.Required:1. Determine the correct December 31, 2018, inventory balance and, assuming that the errors were discoveredafter the 2018 financial statements were issued, analyze the effect of the errors on 2018 cost of goods…
The inventory account of Leni Company at December 31, 2021 has a balance of P1,800,000 and was found to include the following items:*Goods purchased in transit, FOB shipping point, P130,000*Goods held on consignment, P56,000*Goods out on approval, at sales price of P32,500 (cost is P25,000)What is the correct amount of inventory at December 31, 2021?
Subject:
Waterway Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $211,257,900 at both cost and realizable value. At December 31, 2020, the inventory was $286,249,300 at cost and $262,969,900 at realizable value. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method (b) Loss method.
Lumen INC. is preparing its 2020 year-end financial statements. Prior to any adjustments, inventory is valued at P76,050, based on a physical count. The following information has been found relating to certain inventory transactions.2. Goods costing P2,700 were received from a vendor on January 5, 2021. The related invoice was received and recorded on January 5, 2021. The goods were shipped on December 31, 2020, terms FOB shipping point. Which of the following statements is true?a. There is no effect on the ending inventory.b. There is no effect on the net income.c. The 2020 ending inventory is overstated.d. The 2020 net income is overstated. Include an explanation.
Maroon Company’s inventory at December 31, 2021 amounts to P555,000 based on physical count of goods priced at cost and before any year-end adjustments relating to the following:a. Goods with a selling price of P30,000 were in transit to a customer as of December 31, 2021. Terms 2/10, 2/30, FOB shipping point. The freight cost of P1,400 was prepaid by Maroon. These goods cost P24,000.b. Goods shipped FOB shipping point on December 28,2021 from a supplier to Maroon Company were received on January 5, 2022. The invoice amount is P 25,000.c. Goods shipped from Maroon to Pink , a customer, terms FOB destination, are still in transit at December 31, 2021. The goods with a selling price of P120,500, were received by Pink on January 3, 2022 The company sells goods at a mark up of 25% of cost.d. Goods purchased FOB destination were in transit at December 31,2021. The goods with invoice price of P16,500 were received on January 7, 2022. What amount should Maroon report as inventory in…
SPD Company ("SPD") asks you to review its inventory values at 31 December 2021, and prepare the necessary adjustments to the books. The following information is given to you. (1) SPD uses the periodic method of recording inventory. A physical count reveals $78,819 of inventory on hand at 31 December 2021. (2) Not included in the physical count of inventory is $11,690 of merchandise purchased on 13 December from MILL. This merchandise was shipped f.a.b shipping point on 22 December and arived in January. The invoice arrived and was recorded on 31 December. (3) Included in inventory is merchandise sold to DES on 17 December, f.o.b destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for $13,298 on 31 December. The merchandise cost $10,210, and DES received it on 4 January. (4) Included in inventory was merchandise received from BCC on 31 December with an invoice price of S16,625. The merchandise was shipped f.o.b.…
Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2024, the records indicate the following data: Beginning inventory Purchases Freight-in on purchases Purchase returns Net markups Net markdowns Net sales ($ in 000s) Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Cost $ 60 533 26 1 $ $ Retail $ 100 935 1 Required: Assuming the price level increased from 1.00 at January 1 to 1.80 at December 31, 2024, use the dollar-value LIFO retail method to approximate cost of ending inventory and cost of goods sold. Note: Round your intermediate and final answers to the nearest whole dollar. Enter your answers in thousands. +372 X Answer is complete but not entirely correct. ($ in 000s) 209 X 130 X 650 X 812 Screenshot
On June 30, Cullumber Fabrics has the following data pertaining to the retail inventory method. Goods available for sale: at cost $49,920, at retail $64,000; net sales $51,200; and ending inventory at retail $12,800. Compute the estimated cost of the ending inventory using the retail inventory method. Estimated cost of ending inventory $
A company's inventory on December 31, 2024, was $247,000 based on a physical count priced at cost, and before any necessary adjustment for the following: Inventory costing $ 12,000, shipped f.o. b. shipping point from a vendor on December 30, 2024, was received on January 5, 2025. Inventory costing $14, 000, shipped f.o. b. destination from a vendor on December 28, 2024, was received on January 3, 2025. Inventory costing $70,000 was shipped to a customer f.o. b. destination on December 28, arrived at the customer's location on January 6, 2025. Inventory costing $54,000 was being held on consignment by another company. What amount should the company report as inventory in its December 31, 2024, balance sheet? Please explain your answer in detail of why you included or excluded?
Maroon Company’s inventory at December 31, 2021 amounts to P555,000 based on physical count of goods priced at cost and before any year-end adjustments relating to the following:a. Goods with a selling price of P30,000 were in transit to a customer as of December 31, 2021. Terms 2/10, 2/30, FOB shipping point. The freight cost of P1,400 was prepaid by Maroon. These goods cost P24,000.b. Goods shipped FOB shipping point on December 28,2021 from a supplier to Maroon Company were received on January 5, 2022. The invoice amount is P 25,000.c. Goods shipped from Maroon to Pink , a customer, terms FOB destination, are still in transit at December 31, 2021. The goods with a selling price of P120,500, were received by Pink on January 3, 2022 The company sells goods at a mark up of 25% of cost.d. Goods purchased FOB destination were in transit at December 31,2021. The goods with invoice price of P16,500 were received on January 7, 2022. What amount should Maroon report as inventory in…