FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Problem 10-9 (AICPA Adapted)
Hero Company reported inventory on December 31, 2020 at
P6,000,000 based on a physical count of goods priced at cost,
and before any necessary year-end adjustment relating to the
following:
* Included in the physical count were goods billed to a
customer FOB shipping point on December 31, 2020.
These goods had a cost of P125,000 and were picked up by
the carrier on January 10, 2021.
Goods shipped FOB shipping point on December 28, 2020
from a vendor to Hero Company were received on January
4, 2021. The invoice cost was P300,000.
What amount should be reported as inventory on December
31, 2020?
a. 5,875,000
b. 6,000,000
c. 6,175,000
d. 6,300,000
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