Heath Limited is trying to determine the value of its ending inventory at February 29, 2008, the company's year-end. The accountant counted everything that was in the warehouse, as of February 29, which resulted in an ending inventory valuation of $48,000. However, she didn't know how to treat the following transactions so she didn't record them. a. On February 26, Heath shipped to a customer goods costing $800. The goods were shipped FOB shipping point, and the receiving report indicates that the customer received the goods on March . Should not be included in inventory, the legal right is of buyer.

2. b. On February 26, Seller Inc. shipped goods to Heath FOB destination. The invoice price was $350. The receiving report indicates that the goods were received by Schilling on March Should not be included in inventory as legal right is with seller

2. c. Heath had $500 of inventory at a customer's warehouse “on approval.” The customer was going to let Heath know whether it wanted the merchandise by the end of the week, March 4. Should be included in the inventor as the goods have not been shipped

d. Heath also had $400 of inventory on consignment at a Jasper craft shop. Should be included in inventory as the legal right is with consignor.

e. On February 26, Heath ordered goods costing $750. The goods were shipped FOB shipping point on February 27. Heath received the goods on March 1. Should be included in inventory s legal right with the buyer

f. On February 28, Heath packaged goods and had them ready for shipping to a customer FOB destination. The invoice price was $350 the cost of the items was $250. The receiving report indicates that the goods were received by the customer on March 2. Should be included in inventory as legal right with the seller.

g. Heath had damaged goods set aside in the warehouse because they are no longer saleable. These goods originally cost $400 and, originally, Heath expected to sell these items for $600. Should be included in inventory as it has market value.

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Inventory on Feb 29

48000+500+400+750+250+400= 50300