P6-1A Kirk Limited is trying to determine the value of its ending inventory as of February 28, 2012, the company’s year-end. The accountant counted everything that was in the warehouse, as of February 28, which resulted in an ending inventory valuation of $48,000. However, she didn’t know how to treat the following transactions so she didn’t record them.
Determine items and amounts to be recorded in inventory.
(SO 1), AN
(a) On February 26, Kirk shipped to a customer goods costing $800. The goods were shipped FOB shipping point, and the receiving report indicates that the customer received the goods on March 2.
(b) On February 26, Seller Inc. shipped goods to Kirk FOB destination. The invoice price was $350 plus $25 for freight. The receiving report indicates that the goods were received by Kirk on March 2.
(c) Kirk had $500 of inventory at a customer’s warehouse “on approval.” The customer was going to let Kirk know whether it wanted the merchandise by the end of the week, March 4.
(d) Kirk also had $400 of inventory at a Balena craft shop, on consignment from Kirk.
(e) On February 26, Kirk ordered goods costing $750. The goods were shipped FOB shipping point on February 27. Kirk received the goods on March 1.
(f) On February 28, Kirk packaged goods and had them ready for shipping to a customer FOB destination. 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.
(g) Kirk had damaged goods set aside in the warehouse because they are no longer saleable. These goods originally cost $400 and, originally, Kirk expected to sell these items for $600.
For each of the above transactions, specify whether the item in question should be included in ending inventory, and if so, at what amount. For each item that is not included in ending inventory, indicate who owns it and what account, if any, it should have been recorded in.
We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.Read more
The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.Read more
The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.Read more
By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.Read more