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What is the correct amount of inventory that should reported

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Reference no: EM132746000

Kim Merchandising Company reported inventory of P345,600 at December 31, 2012. You discovered that the inventory amount, among others, included the following:

  1. Good costing P21,600 ordered by a customer on December 27, 2012, shipped FOB destination on December 29, 2012 and received by the customer at their warehouse on January 5, 2013.
  2. Goods costing P14,800 ordered on December 25, 2012 shipped to Kim FOB destination and received January 2, 2013.
  3. Goods costing P19,200 held on consignment.
  4. Goods costing P12,400 ordered from a supplier on December 26, 2012, shipped FOB shipping point on December 28 but had not been received by December 31.
  5. Goods costing P31,500 shipped by a vendor FOB seller on December 31, 2012 and received by Kim on January 5, 2013.
  6. Goods costing P12,500 which was shipped FOB destination to a customer on December 29, 2012. The goods are still in transit and the customer expected to receive the merchandise on January 6, 2013.
  7. Goods costing P40,000 shipped by a vendor FOB destination on December 29, 2012. The related invoice received and recorded on December 31, 2012. The goods were received by Kim on January 4, 2013.

Problem 1: What is the correct amount of inventory that should be reported by Kim in its December 31, 2012 statement of financial position?

Reference no: EM132746000

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