
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Problem A:
Slytherin Corporation is a small trading company that uses a periodic inventory system to keep
track of its goods. Total inventory at year's end (December 31, 2021) was P500,000, according to
the physical count conducted at the evening of December 31. The company also gave the following
details on recent sales (steady 25% profit margin based on sales) and purchases made near the end
of the year:
a. Purchased goods worth P30,000 from a supplier on December 29, 2021, and got them on
January 2, 2022 under FOB Shipping Point.
b. Purchased goods worth P50,000 from a seller on December 30, 2021, and got them on
January 4, 2022 under FOB Destination.
c. Purchased P45,000 worth of goods from a seller on December 26, 2021, and got them on
December 30, 2021, under FOB Shipping Point.
d. Purchased items worth P60,000 from a shop on December 28, 2021, and got them on
December 31, 2021, under FOB Destination.
e. On December 24, 2021, the company shipped products to a customer for P40,000, and they
were delivered on January 5, 2022 under FOB Shipping Point.
f. On December 31, 2021, the company shipped goods to a customer for P25,000, and they were
delivered on January 1, 2022 under FOB Destination.

Transcribed Image Text:g. On December 25, 2021, the company shipped products to a buyer for P20,000, and they were
delivered on December 29, 2022 under FOB Shipping Point.
h. On December 27, 2021, the company shipped items to a consumer for P25,000, and they
were delivered on December 28, 2022 under FOB Destination.
1. What is the correct inventory amount to include in the December 31, 2021 statement
of financial position?
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