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Carla Vista Limited is trying to determine the value of its ending inventory as of February 2 8 , 2 0 2 7 , the

Carla Vista Limited is trying to determine the value of its ending inventory as of February 28,2027, the company's year-end. The
accountant counted everything that was in the warehouse as of February 28, which resulted in an ending imventory valuation of
$56,640. However, she didn't know how to treat the following transactions so she didn't record them.
For each of the below transactions, specify whether the item in question should be included in ending inventory, and if so, at what
amount. For each item that is not included in ending inventory, indicate who owns it and what account, if any, it should have been
recorded in.
a. On February 26, Carla Vista shipped to a customer goods costing $944. The goods were shipped FOB shipping point,
and the receiving report indicates that the customer received the goods on March 2.
b. On February 26, Sandhill Inc. shipped goods to Carla Vista FOB destination. The imvoice price was $413 plus $39 for
freight. The receiving report indicates that the goods were received by Carla Vista on March 2.
c. Carla Vista had $590 of inventory at a customer's warehouse "on approval." The customer was going to let Carla
Vista know whether it wanted the merchandise by the end of the week, March 4.
d. Carla Vista also had $472 of inventory at a Wildhorse craft shop, on consignment from Carla Vista.
e. On February 26, Carla Vista ordered goods costing $885. The goods were shipped FOB shipping point on February
Carla Vista received the goods on March 1.
f. On February 28, Carla Vista packaged goods and had them ready for shipping to a customer FOB destination. The
invoice price was $413 plus $39 for freight; the cost of the items was $338. The receiving report indicates that the
goods were received by the customer on March 2.
g. Carla Vista had damaged goods set aside in the warehouse because they are no longer saleable. These goods
originally cost $472 and, originally, Carla Vista expected to sell these items for $708.Carla Vista Limited is trying to determine the value of its ending imventory as of February 28,2027, the company's year-end. The
accountant counted everything that was in the warehouse as of February 28, which resulted in an ending inventory valuation of
$56,640. However, she didn't know how to treat the following transactions so she didn't record them.
For each of the below transactions, specify whether the item in question should be included in ending inventory, and if so, at what
amount. For each item that is not included in ending inventory, indicate who owns it and what account, if any, it should have been
recorded in.
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