Question

Bramble Limited is trying to determine the amount of its ending inventory as at February 28, the company’s year end. The accountant counted everything in the warehouse in early March, which resulted in an ending inventory amount of $231,900. However, the accountant was not sure how to treat the following transactions, so he did not include them in the count. He has asked for your help in determining whether or not the following transactions should be included in inventory: 1. Feb 1 Bramble shipped $1,880 of inventory on consignment to Banff Corporation. By February 28, Banff had sold half of this inventory for Bramble. 2. 19 Bramble was holding merchandise that had been sold to a customer on February 19 but needed adjustments before the customer would take possession. The merchandise cost $980 and alterations cost $130. The customer plans to pick up the merchandise on March 2 after the alterations are complete. 3. 22 Bramble shipped goods FOB shipping point to a customer. The merchandise cost $1,540. The appropriate party paid the freight costs of $9. The receiving report indicates that the goods were received by the customer on March 2. 4. 23 Bramble received $1,620 of inventory on consignment from Craft Producers Ltd. By February 28, Bramble had not sold any of this inventory. 5. 25 Bramble purchased goods FOB shipping point from a supplier. The merchandise cost $1,370. The appropriate party paid the freight costs of $10. The goods were shipped by the supplier on February 26 and received by Bramble on March 3. 6. 26 Bramble purchased goods FOB destination from a supplier. The merchandise cost $1,480. The appropriate party paid the freight costs of $130. The goods were shipped by the supplier on February 27 and received by Bramble on March 4. 7. 27 Bramble shipped goods FOB destination costing $1,910 to a customer. The appropriate party paid the freight costs of $220. The receiving report indicates that the customer received the goods on March 7. 8. Mar. 5 Bramble had $1,930 of inventory isolated in the warehouse. The inventory is designated for a customer who has requested that the goods not be shipped until March 5.

(a) For each of the situations, specify whether the item 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. (Round answers to 0 decimal places, e.g. 25.) Include/Do not include Amount Ownership Account 1. Feb 1 Bramble shipped $1,880 of inventory on consignment to Banff Corporation. By February 28, Banff had sold half of this inventory for Bramble. IncludeDo not include $ Craft Producers Ltd.Customer OwnershipSupplier OwnershipBanff CorporationBramble Goods in transitPurchaseInventory 2. 19 Bramble was holding merchandise that had been sold to a customer on February 19 but needed alteration before the customer would take possession. The merchandise cost $980 and alterations cost $130. The customer plans to pick up the merchandise on March 2 after the alterations are complete. Do not includeInclude Supplier OwnershipCraft Producers Ltd.BrambleCustomer OwnershipBanff Corporation PurchaseInventoryGoods in transit 3. 22 Bramble shipped goods FOB shipping point to a customer. The merchandise cost $1,540. The appropriate party paid the freight costs of $9. The receiving report indicates that the goods were received by the customer on March 2. Do not includeInclude BrambleCraft Producers Ltd.Customer OwnershipSupplier OwnershipBanff Corporation Goods in transitPurchaseInventory 4. 23 Bramble received $1,620 of inventory on consignment from Craft Producers Ltd. By February 28, Bramble had not sold any of this inventory. Do not includeInclude Customer OwnershipSupplier OwnershipBrambleBanff CorporationCraft Producers Ltd. PurchaseGoods in transitInventory 5. 25 Bramble purchased goods FOB shipping point from a supplier. The merchandise cost $1,370. The appropriate party paid the freight costs of $10. The goods were shipped by the supplier on February 26 and received by Bramble on March 3. IncludeDo not include Banff CorporationBrambleCraft Producers Ltd.Customer OwnershipSupplier Ownership InventoryGoods in transitPurchase 6. 26 Bramble purchased goods FOB destination from a supplier. The merchandise cost $1,480. The appropriate party paid the freight costs of $130. The goods were shipped by the supplier on February 27 and received by Bramble on March 4. IncludeDo not include BrambleSupplier OwnershipCraft Producers Ltd.Banff CorporationCustomer Ownership Goods in transitInventoryPurchase 7. 27 Bramble shipped goods FOB destination costing $1,910 to a customer. The appropriate party paid the freight costs of $220. The receiving report indicates that the customer received the goods on March 7. Do not includeInclude BrambleCraft Producers Ltd.Customer OwnershipSupplier OwnershipBanff Corporation Goods in transitPurchaseInventory 8. Mar. 5 Bramble had $1,930 of inventory isolated in the warehouse. The inventory is designated for a customer who has requested that the goods not be shipped until March 5. Do not includeInclude Supplier OwnershipCustomer OwnershipCraft Producers Ltd.Banff CorporationBramble InventoryPurchaseGoods in transit

Answer 1

Sl. no.	Include/ Do not include	Amount	Ownership	Account
1.	Include	$ 940	Bramble	Inventory
2.	Do not include	0	Customer Ownership	-
3.	Do not include	0	Customer Ownership	-
4.	Do not include	0	Craft Producers Ltd.	-
5.	Include	1,380	Bramble	Purchase
6	Do not include	0	Supplier Ownership	-
7.	Include	1,910	Bramble	Goods in Transit
8.	Include	1,930	Bramble	Goods in Transit