FAR Company cans two food commodities which it stores at various warehouses. The company uses a perpetual inventory system under which the finished goods inventory is charged with production and credited for sales at standard cost. The detail of the finished goods inventory is maintained on punched cards by the tabulating department in units and pesos for the various warehouses.

5. On December 27 the Pampanga warehouse notied the tabulatjng department to remove 2.200 unsalable units of Product A from the nished goods inventory, which it did without receiving a special invoice from the accounting department. The accounting department received a copy of the Pampanga warehouse notication on December 29 and prepared a special invoice which was processed in the normal manner. The units were not included in the physical inventory. 6. A report for the production on January 3 of 2,500 units of Product B was processed for the Bulacan plant as of December 31. 7. A shipment of 300 units of Product B was made from Tarlac warehouse to Ken's Markets, Inc., at 8:30 pm. on December 31 as an emergency service. The sales invoice was processed as of December 31. FAR] Company prefers to treat the transaction as a sale in 2020. 8. The working papers of the auditor observing the physical count at the Bataan warehouse revealed that 700 units of Product 8 were omitted from FAR's physical count. FAR concurred that the units were omitted in error. 9. A sales invoice for 600 units of Product A shipped from the Zambales warehouse was mislaid and was not processed until Ianuary 5. The units were shipped on December 30. .ONTINUATION: 10. The physical inventory of the Angeles WarehouSe excluded 350 units of Product A marked "reserved\". Investigation revealed that this merchandise was being stored as a convenience for Steve's Markets, lnc., a customer. This merchandise, which has not been recorded as a sale, is billed as it is shipped. 11. A shipment of 10,000 units of Product B was made on December 27 from the Zambales warehouse to the Bataan warehouse. The shipment arrived on January 6 but had been excluded from the physical inventories