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Question 2 of 3 Sarasota Limited is trying to determine the amount of its ending inventory as at August 3 1 , the company's year
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Sarasota Limited is trying to determine the amount of its ending inventory as at August the company's year end. The accountant counted everything in the warehouse in early September, which resulted in an ending inventory amount of $ 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 he determining whether she should or should not include the following transactions in inventory:
Aug. Sarasota had $ of inventory isolated in the warehouse. The company isolated the goods because a customer did not want them shipped until September The customer does not own the goods and will pay for them in September.
Aug. Sarasota purchased goods FOB shipping point from a supplier. The inventory cost $ The appropriate party paid the freight costs of $ The supplier shipped the goods on August and Sarasota received the goods on September
Aug. Sarasota purchased goods FOB destination from a supplier. The inventory cost $ The appropriate party paid the freight costs of $ The supplier shipped the goods on August and Sarasota received the goods on September
Aug. Sarasota was holding inventory that it sold to a customer on August that needed adjustments before the customer would take possession. The inventory cost $ and the alterations, completed on August cost $ The customer plans to pick up the inventory on September
Aug. Sarasota received $ of inventory on consignment from Temiskaming Manufacturers td By August Sarasota had not sold any of this inventory.
Aug. Sarasota shipped goods costing $ FOB destination to a customer. The appropriate party paid the freight costs of $ on September The receiving report indicates that the customer received the goods on September
Aug. Sarasota shipped $ of inventory on consignment to Chapleau Corporation. By August Chapleau had sold of this inventory for Sarasota.
Aug. Sarasota shipped goods FOB shipping point to a customer. The inventory cost $ The appropriate party paid the freight costs of $ The receiving report indicates that the customer received the goods on September
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