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Heath Limited is trying to determine the value of its ending inventory at February 28, 2012, the company's year end. The accountant counted everything that was in the warehouse as of February 28, 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. 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 2. 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 Heath on March 2. 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. Heath also had $400 of inventory on consignment at a Jasper craft shop. 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. 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. 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. Instructions For each of the above transactions, specify whether the item in question should be included in ending inventory, and if so, at what amount. If the item should not be included in ending inventory, put 0 for the amount.
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