Aber Limited is trying to determine the value of its ending inventory as of February 28, 2014, the company Solution On February 26, Aber 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. The title to the goods passed to the customer on Feb 26, so on Feb 28, they were no longer Aber\'s. Not to be included in inventory. The $800 would have gone to COGS. b. On February 26, Landis Inc. shipped goods to Aber FOB destination. The invoice price was $350 plus $25 for freight. The receiving report indicates that the goods were received by Aber on March 2. Title passed to Aber only on Mar 2, so as of Feb 28, the goods should not be included in its inventory. c. Aber had $500 of inventory at a customer .

1. Aber Limited is trying to determine the value of its ending inventory as of February 28, 2014, the
company
Solution
On February 26, Aber 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. The title to the goods passed to the customer on Feb 26, so on Feb 28, they were no longer
Aber's. Not to be included in inventory. The $800 would have gone to COGS. b. On February
26, Landis Inc. shipped goods to Aber FOB destination. The invoice price was $350 plus $25 for
freight. The receiving report indicates that the goods were received by Aber on March 2. Title
passed to Aber only on Mar 2, so as of Feb 28, the goods should not be included in its inventory.
c. Aber had $500 of inventory at a customer