Question 6.1: 1. A master carver of wooden birds operates her business out...

Fundamental Accounting Principles

1. A master carver of wooden birds operates her business out of a garage. At the end of the current period,the carver has 17 units (carvings) in her garage, 3 of which were damaged by water and cannot be sold.
She also has another 5 units in her truck, ready to deliver per a customer order, terms FOB destination,and another 11 units out on consignment at retail stores. How many units does she include in the business’s period-end inventory?

2. A distributor of artistic iron-based fixtures acquires a piece for $1,000, terms FOB shipping point.
Additional costs in obtaining it and offering it for sale include $150 for transportation-in, $300 for import duties, $100 for insurance during shipment, $200 for advertising, a $50 voluntary gratuity to the delivery person, $75 for enhanced store lighting, and $250 for sales staff salaries. For computing inventory, what cost is assigned to this artistic piece?

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