Reference no: EM132697932

Oriole Cosmetics Inc. had a number of transactions during the year relating to the purchase of various inventory items as noted below.

Problem 1: For each of the below independent transactions determine what amount should be included in inventory.

1. Lipstick products counted in the physical inventory amount to $21,400 which include $1,200 of duty charges for importing the goods and $2,300 of recoverable taxes.
2. Makeup kits held on consignment by a retailer with a cost of $15,000 (inclusive of $1,200 of commissions to the retailer). 
3. Costs of $5,600 to store makeup products in Oriole Cosmetic's warehouse.