BCD Company conducted a physical count on December 31, 2019 which showed inventory with a total cost of P4,000,000 However, further investigation revealed that the following items were excluded from the count: Goods sold to a customer which are being held for the customer to call at the customer's convenience 220,000 A packing case containing a product standing in the shipping room was not included in the physical count because it was marked "hold for shipping instructions" 610,000 Goods in process held by an outside processor for further processing 250,000 A special machine, fabricated to order for a customer, was finished and specifically segregated at the back part of the shipping room on December 31, 2019. The customer was 220,000 billed on that date and the machine was excluded from inventory although it was shipped on January 2, 2020. 220,000 Goods shipped to the entity FOB destination on December 26, 2019 were received on January 2, 2020. The invoice cost is included in the preliminary inventory balance. 310,000 At year-end, the entity held merchandise on consignment from another entity. This merchandise is included in the preliminary inventory balance 300,000 On December 29, 2019 merchandice was shipped to a customer FOB shipping point and arrived at the customer location on January 3. 2020. The merchandise is not included in the preliminary inventory balance 120,000 At vear-end, the entitv had merchandise out on consignment with the another entity. The merchandise is not included in the preliminary inventory balance. 100,000 How much is the adjusted ending inventory? a. 3,740,000 b. 4,040,000 c. 4,290,000 d. 4,350,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 69BPSB

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BCD Company conducted a physical count on December 31, 2019 which showed inventory with a total cost of P4,000,000
However, further investigation revealed that the following items were excluded from the count:

Goods sold to a customer which are being held for the customer to call at the customer's convenience	220,000
A packing case containing a product standing in the shipping room was not included in the physical count because it was marked "hold for shipping instructions"	610,000
Goods in process held by an outside processor for further processing	250,000
A special machine, fabricated to order for a customer, was finished and specifically segregated at the back part of the shipping room on December 31, 2019. The customer was 220,000 billed on that date and the machine was excluded from inventory although it was shipped on January 2, 2020.	220,000
Goods shipped to the entity FOB destination on December 26, 2019 were received on January 2, 2020. The invoice cost is included in the preliminary inventory balance.	310,000
At year-end, the entity held merchandise on consignment from another entity. This merchandise is included in the preliminary inventory balance	300,000
On December 29, 2019 merchandice was shipped to a customer FOB shipping point and arrived at the customer location on January 3. 2020. The merchandise is not included in the preliminary inventory balance	120,000
At vear-end, the entitv had merchandise out on consignment with the another entity. The merchandise is not included in the preliminary inventory balance.	100,000

How much is the adjusted ending inventory?

a. 3,740,000

b. 4,040,000

c. 4,290,000

d. 4,350,000

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