ed in the physical count of inventory is P140,000 of merchandise purchased on Dec.26 from Standing. This merchandise was shipped F.O.B. shipping point on Dec. 29 and arrived in Jan. The invoice arrived and was recorded on Dec. 31. c. Not included in inventory is merchandise sold to Oval on Dec. 30, F.O.B. destination. The invoice was prepared and recorded as a sale on account for P140,000 on Dec. 31. The merchandise cost P80,000, and Oval received it on Jan. 3. d. Included in inventory was merchandise received from Owl on consignment on Dec. 31 with an invoice price of P150,000.
Kilay Company asks you to review its Dec. 31, 2022, inventory values and prepare the necessary adjustments to the books. The following information is given to you.
a. Kilay uses the periodic method of recording inventory. A physical count reveals P3,000,000 inventory on hand at Dec. 31, 2022.
b. Included in the physical count of inventory is P140,000 of merchandise purchased on Dec.26 from Standing. This merchandise was shipped F.O.B. shipping point on Dec. 29 and arrived in Jan. The invoice arrived and was recorded on Dec. 31.
c. Not included in inventory is merchandise sold to Oval on Dec. 30, F.O.B. destination. The invoice was prepared and recorded as a sale on account for P140,000 on Dec. 31. The merchandise cost P80,000, and Oval received it on Jan. 3.
d. Included in inventory was merchandise received from Owl on consignment on Dec. 31 with an invoice price of P150,000.
e. Included in the inventory was merchandise costing P110,000 shipped FAS on December 27, 2022. The invoice excludes the cost of shipment amounting to P25,000.
The adjusted inventory cost of Matcha Company at December 31, 2022 should be?
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