Problem 6-1B Inventory ownershipperpetual LO1 On November 30, 2020, York + Robin Shoes (Y+R) performed the annual inventory count and determined the

year-end ending inventory value to be $49,222. It is now December 3, 2020, and you have been asked to double- check the inventory listing. Y+R uses a perpetual inventory system. Note: Only relevant items are shown on

the inventory listing.

York + Robin Shoes Inventory Listing Year-Ended November 30, 2020

# Inventory Number Inventory Description Quantity (units) Unit Cost ($) Total Value ($) 1 A20 Mens brown dress shoes 74 $50 $ 3,700 2 B30 Womens black boots 50 30 1,500 . . . . . . Total Inventory $49,222

CHAPTER 6 Inventory Costing and Valuation

456 The following situations have been brought to your attention: a. On November 28, 2020, Y+R received a customer order for mens sneakers (Item # D50) with a sale price of $1,000 and cost of $600, FOB shipping. The order was shipped on November 30, 2020. Y+R did not include this inventory. b. On December 2, 2021, Y+R received a shipment of $1,500 womens black boots (Item # B30). The inventory was purchased November 22, 2020, FOB destination from Global Threads. This inventory was included in Y+Rs inventory count and inventory listing. c. Womens sandals (Item # C40) were purchased and shipped from International Sole Co. on November 30, 2020 for $2,300, FOB shipping. The shipment arrived December 5, 2020 and the appropriate party paid for the shipping charges of $230. Additional costs were $161 for import duties and $86 for insurance during shipment. d. On November 30, 2020, Y+R shipped womens flip flops (Item #E60) to a customer for $2,520, FOB destination. The inventory cost $1,800 and the customer received the goods on December 3, 2020. Y+R has not included this inventory. e. Y+R had been holding $3,700 of mens brown dress shoes (Item #A20) on consignment for designer Blue Co. as at November 30, 2020. This inventory was included in Y+Rs inventory count and inventory listing. Required 1. In situations (a) to (e), determine whether each of the following should be included or excluded in inventory as at November 30, 2020 and explain why. If the inventory should be included, determine the inventory cost.

2. Determine the correct ending inventory value at November 30, 2020. Starting with the unadjusted inven- tory value of $49,222, add or subtract any errors based on your analysis in Part 1. Assume all items that are

not shown in the inventory listing or discussed in situations (a) to (e) are recorded correctly.