Monty Limited is trying to determine its ending inventory as of February $28,2027,$ the company's year$-$end. The accountant counted

everything that was in the warehouse as of February $28,$ which resulted in an ending inventory of $$50,000.$ However, she needed help

in determining how to handle the following items.

For each of the transactions below, specify whether the item in question should be included in ending imventory, and if so$,$ at what

amount.

$($a$)$ On February $26,$ Monty shipped goods to a customer costing

$$2,080.$ The goods were shipped FOB shipping point, and the

customer received the goods on March $2.$

Included

Not Included

$($b$)$ On February $26,$ Martine Inc. shipped goods to Monty FOB

destination. The invoice price was $$600$ plus $$20$ for freight.

The receiving report indicates that the goods were received by

Monty on March $2.$

$($c$)$ Monty had $$800$ of inventory at a customer's warehouse $"$on

approval." The customer was going to let Monty know whether

it wanted the merchandise by the end of the week, March $4.$

$($d$)$ Monty also had $$770$ of imventory at a Belle craft shop, on

consignment from Monty.

$($e$)$ On February $26,$ Monty ordered goods costing $$900.$ The

goods were shipped FOB shipping point on February $27.$

Monty received the goods on March $1.$

$($f$)$ On February $28,$ Monty packaged goods and had them ready

for shipping to a customer FOB destination. The invoice price

was $$600$ plus $$20$ for freight; the cost of the items was $$275.$

The goods were received by the customer on March $2.$

$($g$)$ Monty had damaged goods set aside in the warehouse

because they are no longer saleable. These goods originally

cost $$600$ and, originally, Monty expected to sell these items

for $$800.$

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