Question
Sunland Limited is trying to determine the value of its ending inventory as of February 28, 2022, the companys year-end. The accountant counted everything that
Sunland Limited is trying to determine the value of its ending inventory as of February 28, 2022, the companys year-end. The accountant counted everything that was in the warehouse as of February 28, which resulted in an ending inventory valuation of $50,500. However, she didnt know how to treat the following transactions so she didnt record them. For each of the transactions below, specify whether the item in question should be included in ending inventory, and if so, at what amount.
(a) | On February 26, Sunland shipped to a customer goods costing $1,440. The goods were shipped FOB shipping point, and the receiving report indicates that the customer received the goods on March 2. | select an option IncludedNot Included | $enter amount in dollars | |||
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(b) | On February 26, Martine Inc. shipped goods to Sunland FOB destination. The invoice price was $450 plus $20 for freight. The receiving report indicates that the goods were received by Sunland on March 2. | select an option IncludedNot Included | $enter amount in dollars | |||
(c) | Sunland had $800 of inventory at a customers warehouse on approval. The customer was going to let Sunland know whether it wanted the merchandise by the end of the week, March 4. | select an option IncludedNot Included | $enter amount in dollars | |||
(d) | Sunland also had $880 of inventory at a Belle craft shop, on consignment from Sunland. | select an option IncludedNot Included | $enter amount in dollars | |||
(e) | On February 26, Sunland ordered goods costing $1,100. The goods were shipped FOB shipping point on February 27. Sunland received the goods on March 1. | select an option IncludedNot Included | $enter amount in dollars | |||
(f) | On February 28, Sunland packaged goods and had them ready for shipping to a customer FOB destination. The invoice price was $450 plus $20 for freight; the cost of the items was $250. The receiving report indicates that the goods were received by the customer on March 2. | select an option IncludedNot Included | $enter amount in dollars | |||
(g) | Sunland had damaged goods set aside in the warehouse because they are no longer saleable. These goods originally cost $450 and, originally, Sunland expected to sell these items for $800. | select an option IncludedNot Included | $enter amount in dollars |
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