On December 28, Year 2, Kerr Manufacturing Co. purchased goods costing P50, 000. The terms were FOB destination. Some of the costs incurred in connection with the sale and delivery of the goods were as follows:Packaging for shipment P1, 000; shipping P1, 500;and special handling charges P2, 000. These goods were received on December 31, Year 2. In Kerrs December 31, Year 2 balance sheet, what amount of cost for these goods should be included in inventory?

FINANCIAL ACCOUNTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

On December 28, Year 2, Kerr Manufacturing Co. purchased goods costing P50, 000. The terms were FOB destination. Some of the costs incurred in connection with the sale and delivery of the goods were as follows:Packaging for shipment P1, 000; shipping P1, 500;and special handling charges P2, 000. These goods were received on December 31, Year 2. In Kerr’s December 31, Year 2 balance sheet, what amount of cost for these goods should be included in inventory?

A	54, 500
B	53, 500
C	52, 000
D	50, 000

Explanation:

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BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL ACCOUNTING