Pronghorn 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 $200,000. 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 Pronghorn shipped $1,840 of inventory on consignment to Banff Corporation. By February 28, Banff had sold half of this inventory for Pronghorn. Pronghorn 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 $960 and the alterations, completed on February 21, cost $120. The customer plans to pick up the inventory on March 2. Pronghorn shipped goods FOB shipping point to a customer. The inventory cost $1,520. The appropriate party paid the freight costs of $9. The receiving report indicates that the customer received the goods on March 2 Pronghorn received $1,610 of inventory on consignment from Craft Producers Ltd. By February 28, Pronghorn had not sold any of this inventory. Pronghorn purchased goods FOB shipping point from a supplier. The inventory cost $1,350. The appropriate party paid the freight costs of $10. The supplier shipped the goods on February 26 and Pronghorn received the goods on March 3. Pronghorn purchased goods FOB destination from a supplier. The inventory cost $1,500. The appropriate party paid the freight costs of $150. The supplier shipped the goods on February 27 and Pronghorn received the goods on March 4. Pronghorn shipped goods costing $1,880 FOB destination to a customer. The appropriate party paid the freight costs of $200. The receiving report indicates that the customer received the goods on March 7. Pronghorn 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. 28 For each of the situations, specify whether the accountant should include the item in ending inventory, and it 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 Accoun 1 $ 19 Pronghorn shipped $1,840 of inventory on consignment to Banff Corporation By February 28, Banft had sold half of this inventory for Pranghorn. Pronghorn 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 $960 and the alterations, completed on February 21, cost $120. The customer plans to pick up the inventory on March 2 Pronghorn shipped goods FOB shipping point to a customer The inventory cost $1,520 The appropriate party paid the freight costs of $9 The 22 receiving report indicates that the customer received the goods on March 2. 4. 23 5. 25 Pronghorn received $1,610 of inventory on consignment from Craft Producers Ltd. By February 28, Pronghorn had not sold any of this inventory. Pronghorn purchased goods FOB shipping point from a supplier. The inventory cost $1,350. The appropriate party paid the freight costs of $10. The supplier shipped the goods on February 26 and Pronghorn received the goods on March 3 6. 26 7. 27 Pronghorn purchased goods FOB destination from a supplier. The inventory cost $1.500 The appropriate party paid the freight costs of $150. The supplier shipped the goods on February 27 and Pronghorn received the goods on March 4 Pronghorn shipped goods costing $1,880 FOB destination to a customer The appropriate party paid the freight costs of $200. The receiving report indicates that the customer received the goods on March 7 Pronghorn had $1,980 of inventory isolated in the warehouse. The company isolated the goods bccausc a customer did not want them shipped until March 5. The customer docs not own the goods and will pay for them in March. 8. 28 Pronghorn 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 $200,000. 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 Pronghorn shipped $1,840 of inventory on consignment to Banff Corporation. By February 28, Banff had sold half of this inventory for Pronghorn. Pronghorn 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 $960 and the alterations, completed on February 21, cost $120. The customer plans to pick up the inventory on March 2. Pronghorn shipped goods FOB shipping point to a customer. The inventory cost $1,520. The appropriate party paid the freight costs of $9. The receiving report indicates that the customer received the goods on March 2 Pronghorn received $1,610 of inventory on consignment from Craft Producers Ltd. By February 28, Pronghorn had not sold any of this inventory. Pronghorn purchased goods FOB shipping point from a supplier. The inventory cost $1,350. The appropriate party paid the freight costs of $10. The supplier shipped the goods on February 26 and Pronghorn received the goods on March 3. Pronghorn purchased goods FOB destination from a supplier. The inventory cost $1,500. The appropriate party paid the freight costs of $150. The supplier shipped the goods on February 27 and Pronghorn received the goods on March 4. Pronghorn shipped goods costing $1,880 FOB destination to a customer. The appropriate party paid the freight costs of $200. The receiving report indicates that the customer received the goods on March 7. Pronghorn 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. 28 For each of the situations, specify whether the accountant should include the item in ending inventory, and it 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 Accoun 1 $ 19 Pronghorn shipped $1,840 of inventory on consignment to Banff Corporation By February 28, Banft had sold half of this inventory for Pranghorn. Pronghorn 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 $960 and the alterations, completed on February 21, cost $120. The customer plans to pick up the inventory on March 2 Pronghorn shipped goods FOB shipping point to a customer The inventory cost $1,520 The appropriate party paid the freight costs of $9 The 22 receiving report indicates that the customer received the goods on March 2. 4. 23 5. 25 Pronghorn received $1,610 of inventory on consignment from Craft Producers Ltd. By February 28, Pronghorn had not sold any of this inventory. Pronghorn purchased goods FOB shipping point from a supplier. The inventory cost $1,350. The appropriate party paid the freight costs of $10. The supplier shipped the goods on February 26 and Pronghorn received the goods on March 3 6. 26 7. 27 Pronghorn purchased goods FOB destination from a supplier. The inventory cost $1.500 The appropriate party paid the freight costs of $150. The supplier shipped the goods on February 27 and Pronghorn received the goods on March 4 Pronghorn shipped goods costing $1,880 FOB destination to a customer The appropriate party paid the freight costs of $200. The receiving report indicates that the customer received the goods on March 7 Pronghorn had $1,980 of inventory isolated in the warehouse. The company isolated the goods bccausc a customer did not want them shipped until March 5. The customer docs not own the goods and will pay for them in March. 8. 28