The Anson Manufacturing Company reviewed its year-end inventory and found the following items. Indicate which items should be included in the inventory balance at December 31, 2013. Give your reasons for the treatment you suggest.
(a) A packing case containing a product costing $1,210 was standing in the shipping room when the physical inventory was taken. It was not included in the inventory because it was marked "Hold for shipping instructions." The customer's order was dated December 21, but the case was shipped and the customer billed on January 8, 2014.
(b) Merchandise costing $545 was received on December 28, 2013, and the invoice was recorded. The invoice was in the hands of the purchasing agent; it was marked "On consignment."
(c) Merchandise received on January 4, 2014, costing $905 was entered in the purchase register on January 5. The invoice showed shipment was made FOB shipping point on December 31, 2013. Because it was not on hand during the inventory count, it was not included.
(d) A special machine, fabricated to order for a particular customer, was finished and in the shipping room on December 30. The customer was billed on that date and the machine was excluded from inventory although it was shipped January 2, 2014. The customer had requested, in writing, that the special machine be held for shipment until January 2014.
(e) Merchandise costing $1,960 was received on January 3, 2014, and the related purchase invoice was recorded January 5. The invoice showed the shipment was made on December 29, 2013, FOB destination.
(f) Merchandise costing $2,400 was sold on an installment basis on December 15. The customer took possession of the goods on that date. The merchandise was included in inventory because, technically, Anson still holds legal title in order to enforce payment. Historical experience suggests that full payment on installment sales is received approximately 99% of the time.
(g) Goods costing $1,730 were sold and delivered on December 20. The goods were included in inventory because the sale was accompanied by a repurchase agreement requiring Anson to buy back the inventory in February 2014.