Theta Inc. counted and reported the ending inventory on December 31, 2019 at P 2,000,000. None of the following items were included when the total amount of the ending inventory was computed: Goods located in Theta's warehouse that are on consignment from another entity... .P 150,000 Goods sold by Theta and shipped on December 30, 2019 under terms FOB destination point and were in transit as of December 31, 2019 and received by the customer on January 2, 2020... 200,000 Goods purchased by Theta and shipped on December 30, 2019 under FOB shipping point and were in transit on December 31, 2019 and was received by Theta on January 2, 2020... 300,000 Goods sold by Theta and shipped on December 30, under terms FOB shipping point and were in transit on December 31, 2020 and received by the customer on January 2, 2020.... 400,000 What is the correct amount of inventory on December 31, 2019?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Theta Inc. counted and reported the ending inventory on December 31, 2019 at P 2,000,000.
None of the following items were included when the total amount of the ending inventory was
computed:
Goods located in Theta's warehouse that are on consignment
from another entity...
.P 150,000
Goods sold by Theta and shipped on December 30, 2019 under terms
FOB destination point and were in transit as of December 31, 2019 and
received by the customer on January 2, 2020...
200,000
Goods purchased by Theta and shipped on December 30, 2019 under
FOB shipping point and were in transit on December 31, 2019 and
was received by Theta on January 2, 2020...
300,000
Goods sold by Theta and shipped on December 30, under terms
FOB shipping point and were in transit on December 31, 2020 and
received by the customer on January 2, 2020...
400,000
What is the correct amount of inventory on December 31, 2019?
A. P 2,500,000
В. Р 2,350,000
С. Р 2,900,000
D. P 2,750,000
Transcribed Image Text:Theta Inc. counted and reported the ending inventory on December 31, 2019 at P 2,000,000. None of the following items were included when the total amount of the ending inventory was computed: Goods located in Theta's warehouse that are on consignment from another entity... .P 150,000 Goods sold by Theta and shipped on December 30, 2019 under terms FOB destination point and were in transit as of December 31, 2019 and received by the customer on January 2, 2020... 200,000 Goods purchased by Theta and shipped on December 30, 2019 under FOB shipping point and were in transit on December 31, 2019 and was received by Theta on January 2, 2020... 300,000 Goods sold by Theta and shipped on December 30, under terms FOB shipping point and were in transit on December 31, 2020 and received by the customer on January 2, 2020... 400,000 What is the correct amount of inventory on December 31, 2019? A. P 2,500,000 В. Р 2,350,000 С. Р 2,900,000 D. P 2,750,000
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