Question

In: Accounting

MCSR Company provides the following data: Items counted in the warehouse ₱4,000,000 Items included in the...

MCSR Company provides the following data:

Items counted in the warehouse

₱4,000,000

Items included in the count specifically segregated per sale contract

100,000

Items in receiving department, returned by customer, in good condition

50,000

Items ordered and in the receiving department

400,000

Items ordered, invoice received but goods not received. Freight is on account of seller

300,000

Items shipped today, invoice mailed, FOB shipping point

250,000

Items shipped today, invoice mailed, FOB destination

150,000

Items currently being used for window display

200,000

Items on counter for sale

800,000

Items in receiving department, refused because of damage

180,000

Items included in count, damage and unsalable

50,000

Items in the shipping department

250,000

What is the correct amount of inventory?

Solutions

Expert Solution

Calculation of Correct amount of Inventory

Items counted in warehouse 4000000
Items included to be segregated as per sales contract (100000)
Items returned by customer in good condition 50000
Items ordered and in receiving department 400000
Items shipped , FOB destination 150000
Items used for window display 200000
Items on counter for sale 800000
Damaged and unsaleable items (50000)
Items in shipping department 250000
AMOUNT OF INVENTORY 5700000

Amount of Inventory =$5700000


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