AA Company reported inventory on December 31, 2018 at P6,000,000 based on a physical count of goods priced at cost and before any necessary year-end adjustments relating to the following: Included in the physical count were goods billed to a customer FOB shipping point on December 30, 2018. These goods had a cost of P125,000 and were picked up by the carrier on January 2, 2019. Goods shipped FOB shipping point on December 28, 2018 from a vendor to AA were received and recorded on January 2, 2019. The invoice cost was P300,000. What amount should be reported as inventory on December 31, 2018?

AA Company reported inventory on December 31, 2018 at P6,000,000 based on a physical count of goods priced at cost and before any necessary year-end adjustments relating to the following: Included in the physical count were goods billed to a customer FOB shipping point on December 30, 2018. These goods had a cost of P125,000 and were picked up by the carrier on January 2, 2019. Goods shipped FOB shipping point on December 28, 2018 from a vendor to AA were received and recorded on January 2, 2019. The invoice cost was P300,000. What amount should be reported as inventory on December 31, 2018?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...

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