P6.1 (LO 1) Anatolia Designs is trying to determine the value of its ending inventory at February 28, 2020, 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 t48.000. However, she didn't know how to treat the following transactions so she didn't record them. nts to be a. On February 26, Anatolia shipped to a customer goods costing t800. 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, Shira Inc. shipped goods to Anatolia FOB destination. The invoice price was t350. The receiving report indicates that the goods were received by Anatolia on March 2. c. Anatolia had t620 of inventory at a customer's warehouse "on approval." The customer was going to let Anatolia know whether it wanted the merchandise by the end of the week, March 4. d. Anatolia also had t-400 of inventory on consignment at a Palletine craft shop. e. On February 26, Anatolia ordered goods costing +780. The goods were shipped FOB shipping point on February 27. Anatolia received the goods on March 1. f. On February 28, Anatolia packaged goods and had them ready for shipping to a customer FOB des- tination. The invoice price was t350; the cost of the items was t220. The receiving report indicates that the goods were received by the customer on March 2. g. Anatolia had damaged goods set aside in the warehouse because they are no longer saleable. These goods cost t400 and Anatolia originally expected to sell these items for ±600. 000 Instructions For each of the preceding 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.
P6.1 (LO 1) Anatolia Designs is trying to determine the value of its ending inventory at February 28, 2020, 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 t48.000. However, she didn't know how to treat the following transactions so she didn't record them. nts to be a. On February 26, Anatolia shipped to a customer goods costing t800. 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, Shira Inc. shipped goods to Anatolia FOB destination. The invoice price was t350. The receiving report indicates that the goods were received by Anatolia on March 2. c. Anatolia had t620 of inventory at a customer's warehouse "on approval." The customer was going to let Anatolia know whether it wanted the merchandise by the end of the week, March 4. d. Anatolia also had t-400 of inventory on consignment at a Palletine craft shop. e. On February 26, Anatolia ordered goods costing +780. The goods were shipped FOB shipping point on February 27. Anatolia received the goods on March 1. f. On February 28, Anatolia packaged goods and had them ready for shipping to a customer FOB des- tination. The invoice price was t350; the cost of the items was t220. The receiving report indicates that the goods were received by the customer on March 2. g. Anatolia had damaged goods set aside in the warehouse because they are no longer saleable. These goods cost t400 and Anatolia originally expected to sell these items for ±600. 000 Instructions For each of the preceding 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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P6.1 (LO 1) Anatolia Designs is trying to determine the value of its ending inventory at February 28,
2020, 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 t48.000, However, she didn't know how
to treat the following transactions so she didn't record them.
ants to be
a. On February 26, Anatolia shipped to a customer goods costing t800. 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, Shira Inc. shipped goods to Anatolia FOB destination. The invoice price was t350,
The receiving report indicates that the goods were received by Anatolia on March 2.
c. Anatolia had t620 of inventory at a customer's warehouse "on approval." The customer was going
to let Anatolia know whether it wanted the merchandise by the end of the week, March 4.
d. Anatolia also had t400 of inventory on consignment at a Palletine craft shop.
e. On February 26, Anatolia ordered goods costing t780. The goods were shipped FOB shipping
point on February 27. Anatolia received the goods on March 1.
f. On February 28, Anatolia packaged goods and had them ready for shipping to a customer FOB des-
o tination. The invoice price was t350; the cost of the items was t220. The receiving report indicates
that the goods were received by the customer on March 2.
g. Anatolia had damaged goods set aside in the warehouse because they are no longer saleable. These
goods cost t400 and Anatolia originally expected to sell these items for t600.
Instructions
For each of the preceding 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.
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