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Problem 6-1A Buffalo Industries is trying to determine the value of its ending inventory as of February 28, 2017, the company's year-end. The accountant counted
Problem 6-1A Buffalo Industries 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 $46,840. However, she didn't know how to treat the following transactions so she didn't record them For each of the transactions below, specify whether the item in question should be included in ending inventory, and if so, at what amount. (If item is not included in the ending inventory, then enter 0 for the amounts.) (a) On February 26, Buffalo Industries shipped to a customer goods costing $788. 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, Martine Inc. shipped goods to Buffalo Industries FOB destination. The invoice price was $373 plus $24 for freight. The receiving report indicates that the goods were received by Buffalo Industries on March 2 (c) Buffalo Industries had $500 of inventory at a customer's warehouse "on approval." The customer was going to let Buffalo Industries know whether it wanted the merchandise by the end of the week, March 4 (d) Buffalo Industries also had $419 of inventory at a Belle craft shop, on consignment from Buffalo Industries. (e) On February 26, Buffalo Industries ordered goods costing $816. The goods were shipped FOB shipping point on February 27. Buffalo Industries received the goods on March 1
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