The current ending inventory value for Wilfred Co. is at $297,000. Decide whether the listed...
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Accounting
The current ending inventory value for Wilfred Co. is at $297,000. Decide whether the listed transactions 1-5 were handled properly by Wilfred or whether each needs to be added or subtracted to the ending value and what value should be used.
1. Good sold and shipped 12/28 FOB shipping point were excluded. [ Select ] ["Excluded is correct.", "Should be included $38000.", "Should be included $12000."]
2. Goods purchased 12/27 FOB destination and in transit at year-end were excluded. [ Select ] ["Excluded is correct.", "Should be included $95000", "Should be included $45000"]
3. Goods purchased 12/26 FOB shipping point and in transit at year-end were excluded. [ Select ] ["Excluded was correct.", "Should be included $22000", "Should be included $11000"]
4. Goods sold 12/30 FOB destination and in transit at year-end were excluded. [ Select ] ["Excluded is correct", "Should be included $35000", "Should be included $30000"]
5. Goods purchased FOB destination and in transit at year-end were included. [ Select ] ["Included is correct", "Should be excluded subtract 44000", "Should be excluded add $44000"]
6. The updated inventory value for Wilfred Co. should be [ Select ] ["$297,000", "$310,000", "$354,000"]
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