Help Houghton Limited is trying to determine the value of its ending inventory as of February 28, 2022, the company's year-end. Thefollowing 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 whatamount.(b)(c)(d)(2)(f)On February 26, Houghton shipped goods costing $700 to acustomer and charged the customer $875. The goods wereshipped with terms FOB shipping point and the receivingreport indicates that the customer received the goods onMarch 2.On February 26, Crain Inc. shipped goods to Houghton underterms FOB shipping point. The invoice price was $450 plus$50 for freight. The receiving report indicates that the goodswere received by Houghton on March 2.Houghton had $800 of inventory isolated in the warehouse.The inventory is designated for a customer who has requestedthat the goods be shipped on March 10.Also included in Houghton's warehouse is $780 of inventorythat Korenic Producers shipped to Houghton on consignment.On February 26, Houghton issued a purchase order to acquiregoods costing $960. The goods were shipped with terms FOBdestination on February 27. Houghton received the goods onMarch 2On February 26, Houghton shipped goods to a customerunder terms FOB destination. The invoice price was $410; thecost of the items was $250. The receiving report indicates thatthe goods were received by the customer on March 2Houghton had damaged goods set aside in the warehousebecause they are no longer saleable. These goods originallycost $400, and Houghton had expected to sell these items for$600.IncludedNot Included$$$

The inventory sold under the term FOB destination is included in the ending inventory of the seller…

Houghton Limited is trying to determine the value of its ending inventory as of February 28, 2022, 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 belov, specify whether the item in question should be included in ending inventory, and if so, at what On February 26, Houghton shipped goods costing $700 to a customer and charged the customer $875. The goods were shipped with terms FOB shipping point and the receiving report indicates that the customer received the goods on March 2 On February 26, Crain Inc. shipped goods to Houghton under terms FOB shipping point. The invoice price was $450 plus $50 for freight. The receiving report indicates that the goods were received by Houghton on March 2 Houghton had $600 of inventory isolated in the warehouse The inventory is designated for a customer who has requested that the goods be shipped on March 10. Also included in Houghton's warehouse is $780 of inventory that Korenic Producers shipped to Houghton on consignment On February 26, Houghton issued a purchase order to acquire goods costing $950. The goods were shipped with terms FOB destination on February 27. Houghton received the goods on March 2 On February 26, Houghton shipped goods to a customer under terms FOB destination. The invoice price was $410; the cost of the items was $250. The receiving report indicates that the goods were received by the customer on March 2 Houghton had damaged goods set aside in the warehouse because they are no longer saleable. These goods originally cost $400, and Houghton had expected to sell these items for Included Not Included S S S

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 9PA: On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as...