What should be the reported amount of inventory on December 31, 2021? Eisha Company conducted a physical count on December 31, 2021 which showed inventory with a total cost of P2,800,000. Upon investigation, the following items were excluded from the count: • Goods sold to a customer which are being held for the customer to call the customer's convenience with a cost of P150,000. • A packing case containing a product amounting to P350,000 in the shipping room was not included in the physical count because it was marked on hold for shipping instructions. • Goods in process costing P180,000 held by an outside processor for further processing. • A special machine costing P225,000 fabricated to order for a customer, was finished and specifically segregated at the back part of the shipping room on December 31, 2021. The customer was billed on that date and the machine was excluded from inventory although it was shipped on January 2, 2022. O 3,330,000 O 3,555,000 O 3,705,000 O 3,880,000 O Answer not given

What should be the reported amount of inventory on December 31, 2021? Eisha Company conducted a physical count on December 31, 2021 which showed inventory with a total cost of P2,800,000. Upon investigation, the following items were excluded from the count: • Goods sold to a customer which are being held for the customer to call the customer's convenience with a cost of P150,000. • A packing case containing a product amounting to P350,000 in the shipping room was not included in the physical count because it was marked on hold for shipping instructions. • Goods in process costing P180,000 held by an outside processor for further processing. • A special machine costing P225,000 fabricated to order for a customer, was finished and specifically segregated at the back part of the shipping room on December 31, 2021. The customer was billed on that date and the machine was excluded from inventory although it was shipped on January 2, 2022. O 3,330,000 O 3,555,000 O 3,705,000 O 3,880,000 O Answer not given

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Description: What should be the reported amount of inventory on December 31, 2021?Eisha Company conducted a physical count on December 31, 2021 which showed inventory with a totalcost of P2,800,000. Upon investigation, the following items were excluded from the

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Chapter1: Financial Statements And Business Decisions

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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What should be the reported amount of inventory on December 31, 2021?
Eisha Company conducted a physical count on December 31, 2021 which showed inventory with a total
cost of P2,800,000. Upon investigation, the following items were excluded from the count:
* Goods sold to a customer which are being held for the customer to call the customer's convenience
with a cost of P150,000.
* A packing case containing a product amounting to P350,000 in the shipping room was not included in
the physical count because it was marked on hold for shipping instructions.
• Goods in process costing P180,000 held by an outside processor for further processing.
• A special machine costing P225,000 fabricated to order for a customer, was finished and specifically
segregated at the back part of the shipping room on December 31, 2021. The customer was billed on
that date and the machine was excluded from inventory although it was shipped on January 2, 2022.
O 3,330,000
O 3,555,000
O 3,705,000
O 3,880,000
Answer not given

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