Reference no: EM132789176

Question - On December 31, 20x1, Dejavu Company has a balance in its inventory of P160,000 and P100,000 in its accounts payable. The inventory balance was determined through physical count. The balances of the two accounts were determined before any necessary adjustment for the following:

a. Merchandise costing P10,000, shipped FOB destination from a vendor on December 30, 20x1, was received and recorded on January 5, 20x2.

b. A package containing a product costing P50,000 was standing in the shipping area when the physical inventory was conducted. This was not included in the inventory because it was marked "hold for shipping instructions". The sale order was dated December 17 but the package was shipped and the customer was billed on January 3, 20x2.

c. Goods in the shipping area were included in inventory because shipment was not made until January 4, 20x2. The goods, billed to the customer FOB shipping point on December 31, 20x1, had a cost of P20,000.

d. Goods shipped FOB destination on December 27, 20x1, from a vendor to Dejavu Co. were received on January 6, 20x2. The invoice cost of P30,000 was recorded on December 31, 20x1 and included in the count as "goods in-transit."

Required - Compute the amount as of December 31, 20x1 of:

1. Inventory

2. Accounts payable