Blossom Company is trying to determine the value of its ending inventory as at February 28, 2021, the companys year end The accountant counted everything that was in the warehouse as at February 28, which resulted in an ending inventory valuation of $61,000 However, he was not sure how to treat the following transactions, so he did not include them in inventory (a) For each of the below transactions, specify whether the item should be included in ending inventory, and if so, at what amount 1 Blossom Company shipped $850 of inventory on consignment to Sunland Company on February 20 By February 28, Sunland Company had sold $335 of this inventory for Blossom 2 On February 28, Blossom was holding merchandise that had been sold to a customer on February 25 but needed some minor alterations The customer has paid for the goods and will pick them up on March 3 after the alterations are complete This inventory cost $480 and was sold for $860 3 In Blossoms warehouse on February 28 is $380 of inventory that Craft Producers shipped to Blossom on consignment 4 On February 27, Blossom shipped goods costing $930 to a customer and charged the customer $1,280 The goods were shipped FOB destination and the receiving report indicates that the customer received the goods on March 3 5 On February 26, Teulon Company shipped goods to Blossom, FOB shipping point The invoice price was $360 plus $25 for freight The receiving report indicates that the goods were received by Blossom on March 2 6 Blossom had $600 of inventory put aside in the warehouse The inventory is for a customer who has asked that the goods be shipped on March 10 7 On February 26, Blossom issued a purchase order to acquire goods costing $725 The goods were shipped FOB destination The receiving report indicates that Blossom received the goods on March 2 8 On February 26, Blossom shipped goods to a customer, FOB shipping point The invoice price was $340 plus $20 for freight The cost of the items was $260 The receiving report indicates that the goods were received by the customer on March 4

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 09, 2024

Blossom Company is trying to determine the value of its ending inventory as at February 28, 2021, the companys year end. The accountant counted everything

Blossom Company is trying to determine the value of its ending inventory as at February 28, 2021, the companys year end. The accountant counted everything that was in the warehouse as at February 28, which resulted in an ending inventory valuation of $61,000. However, he was not sure how to treat the following transactions, so he did not include them in inventory:

(a)

For each of the below transactions, specify whether the item should be included in ending inventory, and if so, at what amount.

1.		Blossom Company shipped $850 of inventory on consignment to Sunland Company on February 20. By February 28, Sunland Company had sold $335 of this inventory for Blossom.
2.		On February 28, Blossom was holding merchandise that had been sold to a customer on February 25 but needed some minor alterations. The customer has paid for the goods and will pick them up on March 3 after the alterations are complete. This inventory cost $480 and was sold for $860.
3.		In Blossoms warehouse on February 28 is $380 of inventory that Craft Producers shipped to Blossom on consignment.
4.		On February 27, Blossom shipped goods costing $930 to a customer and charged the customer $1,280. The goods were shipped FOB destination and the receiving report indicates that the customer received the goods on March 3.
5.		On February 26, Teulon Company shipped goods to Blossom, FOB shipping point. The invoice price was $360 plus $25 for freight. The receiving report indicates that the goods were received by Blossom on March 2.
6.		Blossom had $600 of inventory put aside in the warehouse. The inventory is for a customer who has asked that the goods be shipped on March 10.
7.		On February 26, Blossom issued a purchase order to acquire goods costing $725. The goods were shipped FOB destination. The receiving report indicates that Blossom received the goods on March 2.
8.		On February 26, Blossom shipped goods to a customer, FOB shipping point. The invoice price was $340 plus $20 for freight. The cost of the items was $260. The receiving report indicates that the goods were received by the customer on March 4.