Reference no: EM132998937

Problem 1 - On December 2, 2021, Huelga Manufacturing Co. purchased goods with a cash price of P200,000. Some of the costs incurred in connection with the acquisition of the goods were as follows: Import duties- P20,000; transportation costs - P10,000 and handling costs - P5,000. These goods were received on December 31, 2021. In Huelga's December 31, 2021 balance sheet, at what amount should these goods be included in inventory?

Problem 2 - Matina Company's inventory at October 30, 2021 was P230,000 based on physical count of goods priced at cost and before any necessary adjustments relating to the following:

An invoice for P10,000, terms FOB shipping point, was received and recorded November 5. The invoice shows that the material was shipped October 31, but the receiving report indicates receipt of goods November 3.

An invoice for P5,000 terms FOB destination, was received and recorded November 2. The receiving report indicates that the goods were received November 5.

An invoice for P8,000 was received and recorded October 27. The receiving report attached to the invoice indicates that the shipment was received October 30 in satisfactory condition. Terms of the shipment: FOB shipping point on October 27.

An invoice for P15,000 terms FOB destination was received and recorded November 5. The receiving report indicates that the merchandise was received October 30.

A sales invoice costing P20,000, shipped FOB destination on October 31, received by the customer on November 4.

What amount should Matina report as inventory in its October 31, 2021 balance sheet?