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Chapter 6 Test Problems 1. Pitt Limited is trying to determine the value of its ending inventory as of February 28, 2017, the company's year-end.

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Chapter 6 Test Problems 1. Pitt Limited is trying to determine the value of its ending inventory as of February 28, 2017, 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 $48,000. However, she didn't know how to treat the following transactions so she didn't record them. DIRECTIONS: For each of the following transactions, specify Whether the item in question should be included in ending inventory. If it should be included, what should the dollar amount be? . For each item not included in ending inventory, indicate who owns it and what account (if any) the money should be included in. (10 pts.) A On February 26, Pitt shipped to a customer goods costing $800. The goods were shipped FOB shipping point, and the receiving report indicates that the customer received the shipment on March 2. B. On February 26, Martine, Inc., shipped goods to Pitt FOB Destination. The invoice price was $350 plus $25 for freight. The receiving report indicates that the goods were received by Pitt on March 2. C. Pitt had $500 of inventory at a customer's warehouse on approval." The customer was going to let Pitt know whether it wanted the merchandise by the end of the week on March 4. D. Pitt also had $400 of Inventory at a Belle craft shop, on consignment from Pitt E. On February 26, Pitt ordered goods costing $750. The goods were shipped FOB shipping point on February 27. Pitt received the goods on March 1. F. On February 28, Pitt packaged goods and had them ready for shipping to a customer FOB destination. The invoice price was $350 plus $25 for freight; the cost of the items was $280. The receiving report indicates that the goods were received by the customer on March 2 G. Pitt had damaged goods set aside in the warehouse because they are no longer saleable. These goods originally cost $400 and originally, Pitt expected to sell these items for $600

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