1. Norfarina Company reported P5,000,000 of inventory on December 31, 2021, based on physical count. Additional information is as follows: • Excluded from the physical count were goods billed to a customer, fob shipping point on December 31, 2021. The goods had a cost of P200,000 and had been billed at P350,000. The shipment is ready for pick-up by the delivery contractor on January 5, 2022. • Goods were in transit from a vendor. The invoice cost was P300,000 and goods were shipped fob shipping point on December 31, 2021. • Work-in-process costing P400,000 was sent to an outside processor for finishing on December 31, 2021. • Goods out on consignment with sales price of P1,000,000 and markup of 25% on cost. Shipping costs amounted to P50,000. The correct amount of inventory on December 31, 2021 should be?
1. Norfarina Company reported P5,000,000 of inventory on December 31, 2021, based on physical
count. Additional information is as follows:
• Excluded from the physical count were goods billed to a customer, fob shipping point on
December 31, 2021. The goods had a cost of P200,000 and had been billed at P350,000. The
shipment is ready for pick-up by the delivery contractor on January 5, 2022.
• Goods were in transit from a vendor. The invoice cost was P300,000 and goods were shipped fob
shipping point on December 31, 2021.
• Work-in-
2021.
• Goods out on consignment with sales price of P1,000,000 and markup of 25% on cost. Shipping
costs amounted to P50,000.
The correct amount of inventory on December 31, 2021 should be?
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