Problem 6-1A Monty 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 $232,600. However, the accountant was not sure how to treat the following transactions, so he did not include them in the count. He has asked for your help in determining whether or not the following transactions should be included in inventory: 1. Feb 1 ni ~ 22 w 23 25 Monty shipped $1,840 of inventory on consignment to Banff Corporation. By February 28, Banff had sold half of this inventory for Monty. Monty was holding merchandise that had been sold to a customer on February 19 but needed adjustments before the customer would take possession. The merchandise cost $960 and alterations cost $130. The customer plans to pick up the merchandise on March 2 after the alterations are complete. Monty shipped goods FOB shipping point to a customer. The merchandise cost $1,550. The appropriate party paid the freight costs of $9. The receiving report indicates that the goods were received by the customer on March 2. Monty received $1,630 of inventory on consignment from Craft Producers Ltd. By February 28, Monty had not sold any of this inventory. Monty purchased goods FOB shipping point from a supplier. The merchandise cost $1,380. The appropriate party paid the freight costs of $9. The goods were shipped by the supplier on February 26 and received by Monty on March 3. Monty purchased goods FOB destination from a supplier. The merchandise cost $1,480. The appropriate party paid the freight costs of $160. The goods were shipped by the supplier on February 27 and received by Monty on March 4. Monty shipped goods FOB destination costing $1,870 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. Monty had $1,920 of inventory isolated in the warehouse. The inventory is designated for a customer who has requested that the goods not be shipped until March 5. 26 27 8. Mar. 5 For each of the situations, specify whether the item 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. (Round answers to 0 decimal places, e.g. 25.) Include/Do not include Amount Ownership Account 1. Feb 1 Monty shipped $1,840 of inventory on consignment to Banff Corporation. By February 28, Banff had sold half of this inventory for Monty. Include Monty Inventory 19 Do not include Customer Ownership || Purchase 22 T Do not include | IT Customer Ownership - IT Goods in transit A 23 Do not include 2 Craft Producers Ltd. Inventory 25 Monty was holding merchandise that had been sold to a customer on February 19 but needed alteration before the customer would take possession. The merchandise cost $960 and alterations cost $130. The customer plans to pick up the merchandise on March 2 after the alterations are complete. Monty shipped goods FOB shipping point to a customer. The merchandise cost $1,550. The appropriate party paid the freight costs of $9. The receiving report indicates that the goods were received by the customer on March 2. Monty received $1,630 of inventory on consignment from Craft Producers Ltd. By February 28, Monty had not sold any of this inventory. Monty purchased goods FOB shipping point from a supplier. The merchandise cost $1,380. The appropriate party paid the freight costs of $9. The goods were shipped by the supplier on February 26 and received by Monty on March 3. Monty purchased goods FOB destination from a supplier. The merchandise cost $1,480. The appropriate party paid the freight costs of $160. The goods were shipped by the supplier on February 27 and received by Monty on March 4. Monty shipped goods FOB destination costing $1,870 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. Monty had $1,920 of inventory isolated in the warehouse. The inventory is designated for a customer who has requested that the goods not be shipped until March 5. Do not include a T 9 Do not include a Include Monty Inventory 26 - Craft Producers Ltd. a Inventory Mor Suplier ownership of goods in transit a Monty Inventory In Monty i Inventory & 27 Include 8. Mar. 5 Include Monty Inventory * Your answer is incorrect. Try again. Calculate the revised ending inventory amount? (Round answer to 0 decimal places, e.g. 25.) Ending Inventory Amount LINK TO TEXT