What amount should be reported as inventory on December

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Problem - Hungary Company's inventory on December 31, 2020 was P1,600,000 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 P30,000 and were picked up by the carrier on January 10, 2021.

Goods shipped FOB destination on December 28, 2020 from a vendor were received on January 4, 2021. The invoice cost was P50,000.

Required - What amount should be reported as inventory on December 31, 2020?

Reference no: EM133032618

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