Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Current Attempt in Progress Sandhill Limited is trying to determine the value of its ending inventory as of February 28,2022 , the company's year-end. The

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Current Attempt in Progress Sandhill Limited is trying to determine the value of its ending inventory as of February 28,2022 , 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 \$57.600. However. she didn't know how to treat the following transactions so she didn't record them. For each of the above 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, Sandhill shipped to a customer goods costing $960. 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 . Wildhorse inc shipped goods to Sandhill FOB destination. The invoice price was $420 plus $40 for freight. The receiving report indicates that the goods were received by Sandhill on March 2. c Sandhill had $600 of inventory at a customerls warehouse "on approval." The customer was going to let sandhill know whether it wanted the merchandise by the end of the week. March 4. d. Sandhill also had $480 of inventory at a Blossom craft shop. on consignment from Sandhill. e. On February 26. Sandhill ardered goods costing $900. The goods were shipped FOB shipping point on February 27. Sandhill received the goods on March 1 . f. On February 28, Sandhill packaged goods and had them ready for shipping to a customer FOB destination. The invoice price was $420 plus $40 for freight the cost tof the items was $344. The receiving report indicates that the goods were received by the custamen on March 2 . 3 Sandhill had damaged goods set aside in the warehouse because they are no langer saleable. These goods originally cost $480 and, originally. Sandhill expected to sell these items for $720. Current Attempt in Progress Sandhill Limited is trying to determine the value of its ending inventory as of February 28, 2022, 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 $57.600. However, she didn't know how to treat the following transactions so she didn't record them. For each of the above 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. Is thing to determine the value of its ending inventory as of February 28,2022 the company's year-end. The Hed even thing that was in the warehouse as of February 28 . Which resulted in an ending inventory valuation of let she didnt know how to treat the following transactions so she didn't record them. above transactions specify whether the item in question should be ind uded in ending inventory, and if so, at what titem that is not included in ending inventory, indicate who owns it and what account, if any, it should have been the value of its ending inventory as of February 28. 2022, the company's year-end. The ras in the warehouse as of February 28. Which resulted in an ending inventory valuation of ow to treat the following transactions so she didn't record them. lecify whether the item in question should be included in ending inventory, and if so, at what uded in ending inventory, indicate who owns it and what account, if any, it shou d have been

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions