Kananaskis Company is trying to determine the value of its ending inventory as at February 28, 2014, the company's yea
Kananaskis Company is trying to determine the value of its ending inventory as at February 28, 2014, the company's year end. The accountant counted everything that was in the warehouse as at February 28, which resulted in an ending inventory valuation of $65,000. However, he was not sure how to treat the following transactions, so he did not include them in inventory:
1. Kananaskis shipped $875 of inventory on consignment to Banff Company on February 20. By February 28, Banff Company had sold $365 of this inventory for Kananaskis.
2. On February 28, Kananaskis was holding merchandise that had been sold to a customer on February 25 but needed some minor alterations. The customer has paid for the goods and will pick them up on March 3 after the alterations are complete. This inventory cost $490 and was sold for $880.
3. In Kananaskis' warehouse on February 28 is $400 of inventory that Craft Producers shipped to Kananaskis on consignment.
4. On February 27, Kananaskis shipped goods costing $950 to a customer and charged the customer $1,300. The goods were shipped FOB destination and the receiving report indicates that the customer received the goods on March 3.
5. On February 26, Seller Company shipped goods to Kananaskis, FOB shipping point. The invoice price was $375 plus $30 for freight. The receiving report indicates that the goods were received by Kananaskis on March 2.