Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

for all the transactions should be answered in the same format Ayayai Limited is trying to determine the amount of its ending inventory as at

image text in transcribedimage text in transcribed

for all the transactions should be answered in the same format

Ayayai Limited is trying to determine the amount of its ending inventory as at February 28, the company's year end. The accountant counted everything in the warehouse in early March, which resulted in an ending inventory amount of $ 217,500. However, the accountant was not sure how to treat the following transactions, so she did not include them in the count. She has asked for your help in determining whether she should or should not include the following transactions in inventory: 1. Feb 1 2. 19 3. 22 4. 23 5. 25 Ayayai shipped $ 1,820 of inventory on consignment to Banff Corporation. By February 28, Banff had sold half of this inventory for Ayayai. Ayayai was holding inventory that it sold to a customer on February 19 but that needed adjustments before the customer would take possession. The inventory cost $ 990 and the alterations, completed on February 21, cost $ 100. The customer plans to pick up the inventory on March 2. Ayayai shipped goods FOB shipping point to a customer. The inventory cost $ 1,490. The appropriate party paid the freight costs of $ 9. The receiving report indicates that the customer received the goods on March 2. Ayayai received $ 1,590 of inventory on consignment from Craft Producers Ltd. By February 28, Ayayai had not sold any of this inventory. Ayayai purchased goods FOB shipping point from a supplier. The inventory cost $ 1,350. The appropriate party paid the freight costs of $ 9. The supplier shipped the goods on February 26 and Ayayai received the goods on March 3. Ayayai purchased goods FOB destination from a supplier. The inventory cost $ 1,490. The appropriate party paid the freight costs of $ 150. The supplier shipped the goods on February 27 and Ayayai received the goods on March 4. Ayayai shipped goods costing $ 1,900 FOB destination to a customer. The appropriate party paid the freight costs of $ 180. The receiving report indicates that the customer received the goods on March 7. Ayayai had $ 1,980 of inventory isolated in the warehouse. The company isolated the goods because a customer did not want them shipped until March 5. The customer does not own the goods and will pay for them in March. 6. 26 7. 27 8. 8. 28 For each of the situations, specify whether the accountant should include the item 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, the accountant should record the item in, assuming that the company uses a perpetual inventory system. Include/Do not include Amount Ownership Account Include > $ 1 Ayayai shipped $ 1,820 of inventory on consignment to Banff Corporation. By February 28, Banff had sold half of this inventory for Ayayai. Ayayai was holding inventory that it sold to a customer on February 19 but that needed adjustments before the customer would take possession. The inventory

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

Recommended Textbook for

Financial Management In The Sport Industry

Authors: Matthew T Brown, Daniel Rascher, Mark S Nagel, Chad McEvoy

2nd Edition

9781621590118

More Books

Students also viewed these Accounting questions

Question

=+4. Determine the ending inventory cost.

Answered: 1 week ago

Question

When is it appropriate to show grace toward others?

Answered: 1 week ago