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PROBLEMS: SET A P6-1A Kananaskis Country Company is trying to determine the value of its ending inventory as at February 28, 2003, the company's year
PROBLEMS: SET A P6-1A Kananaskis Country Company is trying to determine the value of its ending inventory as at February 28, 2003, the company's year end. The following transactions occurred, and the accoun- Determine items and amounts to be recorded in inventory tant asked for your help in determining whether these transactions should be recorded or not: (SO 1) AN 1. On February 26, Kananaskis shipped goods costing $800 to a customer and charged the cus- tomer $1,000. The goods were shipped with terms FOB destination and the receiving report indicates that the customer received the goods on March 2. 2. On February 26, Seller Inc. shipped goods to Kananaskis with terms FOB shipping point. The invoice price was $350 plus $25 for freight. The receiving report indicates that the goods were received by Kananaskis on March 2 3. Kananaskis had $500 of inventory isolated in the warehouse. The inventory is designated for a customer who has requested that the goods be shipped on March 10. 4. Also in Kananaskis' warehouse is $400 of inventory that Craft Producers shipped to Kananaskis on consignment CHAPTER 6 Inventory Costing 5. On February 26, Kananaskis issued a purchase order to acquire goods costing $750. The goods were shipped with terms FOB destination. The receiving report indicates that Kananaskis received the goods on March 2. 6. On February 26, Kananaskis shipped goods to a customer with terms FOB shipping point. The invoice price was $350 plus $25 for freight. The cost of the items was $280. The receiving report indicates that the goods were received by the customer on March 2. Instructions For each of the above transactions, specify whether the item in question should be included in end- ing inventory, and if so, at what amount. Explain your reasoning
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