What is the correct amount of inventory on December 31, 2021? Emperador Company counted and reported the ending inventory on December 31, 2021, at P2,800,000. The following items were not yet included when the total amount of the ending inventory was computed: Goods located in the entity's warehouse that are on consignment from another entity Goods sold by the entity and shipped FOB destination was in transit on Dec. 31, 2021, and received by the customer on January 2, 2022 Goods purchased by the entity and shipped FOB seller were in transit on Dec. 31, 2021, and receive by the entity on January 2, 2022 Goods sold by the entity and shipped FOB shipping point were in transit on Dec. 31, 2021, and received by the customer on January 2, 2022 P285,000 P310,000 P440,000 P550,000

What is the correct amount of inventory on December 31, 2021? Emperador Company counted and reported the ending inventory on December 31, 2021, at P2,800,000. The following items were not yet included when the total amount of the ending inventory was computed: Goods located in the entity's warehouse that are on consignment from another entity Goods sold by the entity and shipped FOB destination was in transit on Dec. 31, 2021, and received by the customer on January 2, 2022 Goods purchased by the entity and shipped FOB seller were in transit on Dec. 31, 2021, and receive by the entity on January 2, 2022 Goods sold by the entity and shipped FOB shipping point were in transit on Dec. 31, 2021, and received by the customer on January 2, 2022 P285,000 P310,000 P440,000 P550,000

Name: What is the correct amount ofinventory on December 31, 2021?Emperador
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Description: What is the correct amount ofinventory on December 31, 2021?Emperador Company counted and reported the ending inventory on December 31, 2021, at P2,800,000.The following items were not yet included when the total amount of the ending inventory wasco

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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All of the following are not part of an entity’s inventory at year-end, except *A. Inventory sold and still in-transit at year-end, FOB Shipping pointB. Inventory held for window display in a company’s storeC. Finished Goods, ordered by a VIP customer still in company’s handsD. Goods held on consignment
Lumen INC. is preparing its 2021 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.I. Goods valued at P 11,000 are on consignment with a customer. These goods are not included in the P76,050 inventory figure. Which of the following statements is true?a. There is no effect on the 2021 ending inventory.b. 2021 ending inventory is overstated.c. The 2021 net income is overstated.d. The 2021 net income is understated.Please included an explaination.
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.
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