ABC Co. a manufacturer provided the ff information for the year ended December 31, 2017.
What is the correct amount of inventory?
Extracted text: Inventory at 31 December based on physical count Accounts payable at 31 December Net Sales 1,750,000 1,200,000 8,500,000 Additional information: a. Included in the physical count were tools billed to a customer FOB shipping point on 31 December 2017. These tools had a cost of P28,000 and were billed at P35,000. The shipment was in loading dock waiting to be picked up by the common carrier. b. Goods were in transit from a vendor to QC on 31 December 2017. The invoice cost was P50,000 and the goods were shipped FOB shipping point on 29 December 2017. c. Work in process inventory costing P20,000 was sent to an outside processor for plating on 30 December 2017 d. Tools returned by customers and held pending inspection in the returned goods area on 31 December 2017 were not included in the physical count. On 8 January 2018, the tools costing P26,000 were inspected and returned to inventory. Credit memos totaling P40,000 were issued to the customers on the same date. e. Tools shipped to a customer FOB Destination on 26 December 2017 were in transit on 31 December 2017 and had a cost of P25,000. Upon notification of receipt by the customer on 2 January 2018, QC issued a sales invoice for P42,000 f. Goods with an invoice cost of P30,000 received from a vendor at 5:00 PM on 31 December 2017 were recorded on receiving report dated 2 January 2018. The goods were not included in the physical count but the invoice was included in accounts payable in 31 December 2017 g. Goods received from a vendor on 26 December 2017 were included in the physical count. However, the related P60,000 vendor invoice was not include in accounts payable on 31 December 2017 because the accounts payable copy of the receiving report was lost h. On 3 January 2018, a monthly freight bill in the amount of P20,000 was received. The bill specifically related to merchandise purchased in December 2017, one-half of which was still in the inventory on 31 December 2017. The freight charge was not included in either the inventory or in accounts payable on 31 December 2017.