The physical count conducted in the warehouse of

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13. The physical count conducted in the warehouse of Revilla Company on December 31, 2015 revealed merchandise with a total cost of P5,000,000 was on hand on that date. However, further investigation revealed that the following items were excluded from the count: * Goods sold to a customer, which are being held for the customer to call for at the customer’s convenience with a cost of P200,000. * A packing case containing a product costing P500,000 was standing in the shipping room when the physical inventory was taken. It was not included in the inventory because it was marked “hold for shipping instructions”. Your investigation revealed that the customer’s order was dated December 28, 2015, but that the case was shipped and the customer billed on January 4, 2016. * A special machine costing P250,000, fabricated to order for a customer, was finished and specifically segregated in the back part of the shipping room on December 31, 2015. The customer was billed on that date and the machine excluded from inventory although it was shipped on January 2, 2016. The correct amount of inventory that should be reported in Revilla Company’s statement of financial position at December 31, 2015 is
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