Question

Flounder Corp is trying to determine the value of its ending inventory as of March 31, 2014, 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 above transactions, specify whether the item in question should be included in ending inventory, and if so, at what amount. (If item is not included in the ending inventory, then enter 0 for the amounts.)

(a)		On March 30, Flounder Corp shipped to a customer goods costing $747. The goods were shipped FOB destination, and the receiving report indicates that the customer received the goods on April 1.		IncludedNot Included		$
(b)		On March 28, Wholesale Inc. shipped goods to Flounder Corp FOB shipping point. The invoice price was $349 plus $25 for freight. The receiving report indicates that the goods were received by Flounder Corp on April 2.		IncludedNot Included		$
(c)		Flounder Corp had $510 of consigned goods from Frederick Inc.		Not IncludedIncluded		$
(d)		Flounder Corp had $396 at Stephen’s Variety, on consignment from Flounder Corp.		Not IncludedIncluded		$
(e)		On March 29, Flounder Corp ordered goods costing $814. The goods were shipped FOB destination on March 31. Flounder Corp received the goods on April 3.		Not IncludedIncluded		$
(f)		A customer returned goods to Flounder Corp on March 31. Upon inspection, the goods were found to be undamaged and were accepted as returned goods. These goods originally cost $437 and Flounder Corp sold them for $628.

Answer 1

A not included - 80 FOB shipping point ownership passes to buyer. Not included - $0 should not be included in inventory as legal right is with sever and receiving report indicates that the goods were received by Flounder Corp on April 2 Included - $510 should be included in inventory as the legal right is with consignerne. Flounder corp. Included - $396 should be included in inventory as the items were not sold. Included - $814 should be included in inventory as legal right is with Flounder Corp ( the buyer) a Included - $437 should be included in inventory as it has market value