Skysong Limited is trying to determine the value of its ending inventory as of February 28, 2020, the company’s year-end. The following transactions occurred, and the accountant asked your help in determining whether they should be recorded or not. 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, Skysong shipped goods costing $1,440 to a customer and charged the customer $1,800. The goods were shipped with terms FOB shipping point and the receiving report indicates that the customer received the goods on March 2. Included or Not Included $ (b) On February 26, Louis Inc. shipped goods to Skysong under terms FOB shipping point. The invoice price was $450 plus $40 for freight. The receiving report indicates that the goods were received by Skysong on March 2. Included or Not Included? $ (c) Skysong had $780 of inventory isolated in the warehouse. The inventory is designated for a customer who has requested that the goods be shipped on March 10. Included or Not Included? $ (d) Also included in Skysong’s warehouse is $870 of inventory that Ryhn Producers shipped to Skysong on consignment. Included or Not Included? $ (e) On February 26, Skysong issued a purchase order to acquire goods costing $1,200. The goods were shipped with terms FOB destination on February 27. Skysong received the goods on March 2. Included or Not Included? $ (f) On February 26, Skysong shipped goods to a customer under terms FOB destination. The invoice price was $360; the cost of the items was $275. The receiving report indicates that the goods were received by the customer on March 2. Included or Not Included? $ (g) Skysong had damaged goods set aside in the warehouse because they are no longer saleable. These goods originally cost $450, and Skysong had expected to sell these items for $780. Included or Not Included? $

Skysong Limited is trying to determine the value of its ending inventory as of February 28, 2020, the company’s year-end. The following transactions occurred, and the accountant asked your help in determining whether they should be recorded or not. 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, Skysong shipped goods costing $1,440 to a customer and charged the customer $1,800. The goods were shipped with terms FOB shipping point and the receiving report indicates that the customer received the goods on March 2. Included or Not Included $ (b) On February 26, Louis Inc. shipped goods to Skysong under terms FOB shipping point. The invoice price was $450 plus $40 for freight. The receiving report indicates that the goods were received by Skysong on March 2. Included or Not Included? $ (c) Skysong had $780 of inventory isolated in the warehouse. The inventory is designated for a customer who has requested that the goods be shipped on March 10. Included or Not Included? $ (d) Also included in Skysong’s warehouse is $870 of inventory that Ryhn Producers shipped to Skysong on consignment. Included or Not Included? $ (e) On February 26, Skysong issued a purchase order to acquire goods costing $1,200. The goods were shipped with terms FOB destination on February 27. Skysong received the goods on March 2. Included or Not Included? $ (f) On February 26, Skysong shipped goods to a customer under terms FOB destination. The invoice price was $360; the cost of the items was $275. The receiving report indicates that the goods were received by the customer on March 2. Included or Not Included? $ (g) Skysong had damaged goods set aside in the warehouse because they are no longer saleable. These goods originally cost $450, and Skysong had expected to sell these items for $780. Included or Not Included? $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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(a)	On February 26, Skysong shipped goods costing $1,440 to a customer and charged the customer $1,800. The goods were shipped with terms FOB shipping point and the receiving report indicates that the customer received the goods on March 2.	Included or Not Included	$

(b)	On February 26, Louis Inc. shipped goods to Skysong under terms FOB shipping point. The invoice price was $450 plus $40 for freight. The receiving report indicates that the goods were received by Skysong on March 2.	Included or Not Included?	$

(c)	Skysong had $780 of inventory isolated in the warehouse. The inventory is designated for a customer who has requested that the goods be shipped on March 10.	Included or Not Included?	$

(d)	Also included in Skysong’s warehouse is $870 of inventory that Ryhn Producers shipped to Skysong on consignment.	Included or Not Included?	$

(e)	On February 26, Skysong issued a purchase order to acquire goods costing $1,200. The goods were shipped with terms FOB destination on February 27. Skysong received the goods on March 2.	Included or Not Included?	$

(f)	On February 26, Skysong shipped goods to a customer under terms FOB destination. The invoice price was $360; the cost of the items was $275. The receiving report indicates that the goods were received by the customer on March 2.	Included or Not Included?	$

(g)	Skysong had damaged goods set aside in the warehouse because they are no longer saleable. These goods originally cost $450, and Skysong had expected to sell these items for $780.	Included or Not Included?	$

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