Free Solved Skysong, Inc. is trying to determine the value of its ending inventory as of february 28, 2022, the company’s year-end.


Screenshot 2024 01 11 191838

Screenshot 2024 01 11 191914

Screenshot 2024 01 11 192230

Screenshot 2024 01 11 192343

Screenshot 2024 01 11 192402

Step 1 of 2

In the given problem, Skysong is trying to determine the value of its ending inventory as of February 28,2,022. everything was counted that was in warehouse as of February 28, which resulted in an ending inventory valuation of $51,500.

The transaction that was not known to be recorded, is asked to specify whether the item in question should be included in ending inventory and if so, at what amount?

Inventory valuation – The process of giving the goods kept in a company’s inventory a monetary value is known as inventory valuation. This valuation is essential for computing the cost of goods sold, figuring out how valuable an organization’s assets are, and evaluating the company’s overall financial standing. It is possible to value inventory using a variety of techniques, including weighted average cost, Last-In-First-Out , and First-In-First-Out.

Explanation:

The transaction that was not known to be recorded, is asked to specify whether the item in question should be included in ending inventory and if so, then what would be the amount .

Step 2 of 2

  1. a) On February 26,skysong shipped to a customer goods costing. The goods were shipped FOB shipping point, and the receiving reporting indicates that the customer received the goods on March – It will not be recorded

because the goods has already been shipped to the customer and it will not be included in the calculation of ending inventory.

 

  1. b) On February 26, Martine shipped goods to Skysong FOB destination. The invoice price was $375 plus $35 for freight. The receiving report indicates that the goods were received by Skysong on March 2 – It will be included because the purchased goods were in transit prior to the book’s closing date whether they are received or not, they will be included in the inventory.

The amount would be = 375+35 = 410

 

  1. c) Skysong had $395 of inventory at a customer ‘s warehouse ” on approval.” the customer was going to Jet Skysong know whether it wanted the merchandise by the end of the week march 4 – This will be recorded because the products cannot be deemed sold until the customer has approved them. Consequently, it is included in the company’s inventory.

The amount would be = $395

  1. d) Skysong also had $295 of inventory at a Belle craft shop on consignment from Skysong- This will be recorded because regardless of where the goods are physically located, the consignor will retain ownership of them as the consignee has not yet sold them.

The amount would be = $295

 

  1. e) On February 26. Skysong ordered goods costing $730. The goods were shipped FOB shipping point on February
  2. Skysong received the goods on March 1- This will be included regardless of whether they are received or not, the purchased goods have been in transit prior to the book’s closing date. It will be included in the list of things.

The amount would be = $730

 

  1. f) On February 28, Skysong package goods and had them ready for shipping to a customer FOB destination. The invoice price was $415 plus $20 for freight: the cost of the items was $350. The receiving report indicates that the goods were received by the customer on March 2 – This will be included because the goods were received by the customer on March 2 . and

The amount would be = $350

 

  1. g) Skysong had damaged goods set aside in the warehouse because they are no longer saleable. These goods originally cost $455 and originally, Skysonge expected to sell these items for S715 – it will not be recorded because goods has been damaged and there is no realized value of damaged value.

The amount would be Zero because they have not realized value.

Explanation:

The items are included or not included based on the situation of the question. if the situation is satisfying the conditions to include, it will be included otherwise it won’t.

Final solution

  1. A) It is not included.
  2. B) It will be included.

Amount would be$410

  1. C) It will be included .

Amount would be $395

  1. D) It will be included.

Amount would be $295

  1. E) It will be included.

Amount would be $730

  1. F) It would be included.

Amount would be $350

  1. G) It will not be included

Amount would be 0.

 

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Call Now Button