Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Blossom Services is trying to determine the value of its ending inventory as at February 29,2024 , the company's year end. The following transactions occurred,
Blossom Services is trying to determine the value of its ending inventory as at February 29,2024 , the company's year end. The following transactions occurred, and the accountant asked for your help in determining whether they should be recorded or not. 1. On February 26, Blossom shipped goods costing \\( \\$ 846 \\) to a customer and charged the customer \\( \\$ 1,046 \\). The goods were shipped with termS FOB shipping point and the receiving report indicates that the customer received the goods on March 2. 2. On February 26, Crain Inc. shipped goods to Blossom under terms FOB shipping point. The invoice price was \\( \\$ 496 \\), plus \\( \\$ 76 \\) for freight. The receiving report indicates that the goods were received by Blossom on March 2. 3. Blossom had \\( \\$ 766 \\) of inventory isolated in the warehouse. The inventory is designated for a customer who has requested that the goods be shipped on March 10. 4. Also included in Blossom's warehouse is \\( \\$ 746 \\) of inventory that Korenic Producers shipped to Blossom on consignment. 5. On February 26 , Blossom issued a purchase order to acquire goods costing \\( \\$ 946 \\). The goods were shipped with terms FOB destination on February 27. Blossom received the goods on March 2. 6. On February 26, Blossom shipped goods to a customer under terms FOB destination. The invoice price was \\( \\$ 436 \\); the cost of the items was \\( \\$ 286 \\). The receiving report indicates that the goods were received by the customer on March 2 . 7. Blossom had goods set aside in the warehouse because they are to be returned to the supplier for a full refund. These goods originally cost \\( \\$ 446 \\), and Blossom had expected to sell these items for \\( \\$ 646 \\). For each of the preceding transactions, specify whether the item in question should be included in ending inventory, and if so, at what amount For each of the preceding transactions, specify whether the item in question should be included in ending inventory, and if so, at what amount. Blossom Services is trying to determine the value of its ending inventory as at February 29,2024 , the company's year end. The following transactions occurred, and the accountant asked for your help in determining whether they should be recorded or not. 1. On February 26, Blossom shipped goods costing \\( \\$ 846 \\) to a customer and charged the customer \\( \\$ 1,046 \\). The goods were shipped with termS FOB shipping point and the receiving report indicates that the customer received the goods on March 2. 2. On February 26, Crain Inc. shipped goods to Blossom under terms FOB shipping point. The invoice price was \\( \\$ 496 \\), plus \\( \\$ 76 \\) for freight. The receiving report indicates that the goods were received by Blossom on March 2. 3. Blossom had \\( \\$ 766 \\) of inventory isolated in the warehouse. The inventory is designated for a customer who has requested that the goods be shipped on March 10. 4. Also included in Blossom's warehouse is \\( \\$ 746 \\) of inventory that Korenic Producers shipped to Blossom on consignment. 5. On February 26 , Blossom issued a purchase order to acquire goods costing \\( \\$ 946 \\). The goods were shipped with terms FOB destination on February 27. Blossom received the goods on March 2. 6. On February 26, Blossom shipped goods to a customer under terms FOB destination. The invoice price was \\( \\$ 436 \\); the cost of the items was \\( \\$ 286 \\). The receiving report indicates that the goods were received by the customer on March 2 . 7. Blossom had goods set aside in the warehouse because they are to be returned to the supplier for a full refund. These goods originally cost \\( \\$ 446 \\), and Blossom had expected to sell these items for \\( \\$ 646 \\). For each of the preceding transactions, specify whether the item in question should be included in ending inventory, and if so, at what amount For each of the preceding transactions, specify whether the item in question should be included in ending inventory, and if so, at what amount
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started