Problem 10-16, 10-18, and 10-19. With solution, clear formatting and explanation please. ASAP. Thank you
Problem 10-19 (LAA) Sundown Company is preparing the 2020 year-end financial statements. Prior to any adjustments, inventory is valued at P7,600,000. * Goods costing P250,000 were received from a vendor on January 5, 2021. The related invoice was received and recorded on January 12, 2021. The goods were shipped December 31, 2020 FOB shipping point. * Goods costing P850,000 were shipped on December 31, 2020 to a customer FOB shipping point. The goods were included in ending inventory for 2020 even though the sale was recorded in 2020. * A P350,000 shipment of goods to a customer on December 31, 2020 FOB destination was not included in the year-end inventory. The goods cost P260,000 and were delivered to the customer on January 15, 2021. The sale was properly recorded in 2021. * An invoice for goods costing P350,000 was received and recorded as a purchase on December 31, 2020. The related goods shipped FAS were in transit on December 31, 2020 and received on January 5, 2021 and were not included in the physical inventory. * A P1,050,000 shipment of goods to a customer on December 30, 2020 FOB destination was recorded as a sale in 2020. The goods costing P840,000 and delivered to the customer on January 5, 2021 were not included in 2020 ending inventory. What is the correct inventory on December 31, 2020? a. 9,300,000 b. 7,610,000 C. 8,100,000 d. 8,450,000Problem 10-18 (AICPA Adapted) Reverend Company conducted a physical count on December 31, 2020 which revealed merchandise with a total cost of P5,000,000. However, further investigation revealed that the following items were excluded from the count. Goods sold to a customer which are being held for the customer to call at the customer's convenience with a cost of P200,000. * A packing case containing a product costing P500,000 was standing in the shipping room when the physical inventory was taken. The product was not included in the inventory because it was marked "hold for shipping instructions". The investigation revealed that the customer's order was dated December 28, 2020, but that the case was shipped and the customer billed on January 5, 2021. * A special machine costing P250,000 fabricated to order for a customer was finished and specifically segregated at the back part of the shipping room on December 31, 2020. The customer was billed on that date and the machine was excluded from inventory although it was shipped on January 5, 2021. * Goods in process costing P300,000 held by an outside processor for further processing. * Goods costing P50,000 shipped by a vendor FOB seller on December 31, 2020 and received by the entity on January 10, 2021. What is the correct amount of inventory that should be reported on December 31, 2020? a. 5,500,000 b. 5,550,000 C. 5,850,000 d. 5,800,000Problem 10-16 (LAA) A physical count on December 31, 2020 revealed that Joyous Company had inventory with a cost of P4,410,000. The following items were excluded from this amount: * Merchandise of P610,000 is held by Joyous on consignment. * Merchandise costing P380,000 was shipped by Joyous FOB destination to a customer on December 31, 2020. The customer was expected to receive the goods on January 5, 2021. * Merchandise costing P460,000 was shipped by Joyous FOB shipping point to a customer on December 29, 2020. The customer was expected to receive the goods on January 10, 2021. * Merchandise costing P830,000 shipped by a vendor FOB destination on December 31, 2020 was received by Joyous on January 15, 2021. * Merchandise costing P510,000 purchased FOB shipping point was shipped by the supplier on December 31, 2020 and received by Joyous on January 5, 2021. What amount of inventory should be reported on December 31, 2020? a. 5,300,000 b. 4,690,000 C. 3,800,000 d. 4,920,000
