goods in transit are included in a purchasers inventory when
Ans:Goods in transit are included in purchases inventory when a purchaser is responsible to pay freight charges
a.When the supplier is responsible for freight chargesb.At any time during transitc.When the purchaser is responsible for paying freight chargesd.If the goods are shipped FOB destinatione.After the half-way point between the buyer and seller
Indicate whether the following merchandise in transit should be included or excluded from the company's inventory at year end, December 31. 1. $2,000 of merchandise purchased from a supplier, shipped FOB shipping point on December 29, in transit at year-end. 2. $1,000 of merchandise shipped to a customer on December 30, FOB destination. The goods arrived at the customer's location on January 5.
1) 1) Goods in transit are automatically included in inventory regardless of whether title has passed to the buyer. A) True B) False 2) 2) An advantage of FIFO is that it assigns the most recent costs to cost of goods sold, and does a better job of matching current costs with revenues on the income statement. A) True B) False 3) 3) Errors in the period-end inventory balance only affect the current period's records and financial statements. A) True...
Explain the implications relating to ownership when goods are: a. In transit (FOB) Shipping Point b. In transit (FOB) Destination c. On Consignment (25 marks)
A retailer completed a physical count of ending merchandise inventory. When counting inventory, employees did not include $3,000 of incoming goods shipped by a supplier on December 31 under FOB shipping point. These goods had been recorded in Merchandise Inventory, but they were not included in the physical count because they were in transit. This means shrinkage was incorrectly overstated by $3,000. Indicate whether the failure to include in-transit inventory as part of the physical count results in an overstatement,...
E7-1 LO7-1 Analyzing Items to Be Included in Inventory Based on its physical count of inventory in its warehouse at yearend, December 31 of the current year, Plummer Company planned to report inventory of $34,000. During the audit, the independent CPA devel oped the following additional information: a. Goods from a supplier costing $700 are in transit with UPS on December 31 of the current year. The terms are FOB shipping point (explained in the Required" section). Because these goods...
P7-1 (Algo) Analyzing Items to Be Included in Inventory L07-1 Travis Company has just completed a physical inventory count at year-end, December 31 of the current year. Only the items on the shelves, in storage, and in the receiving area were counted and costed on a FIFO basis. The inventory amounted to $67,000. During the audit, the independent CPA developed the following additional information: a. Goods costing $810 were being used by a customer on a trial basis and were...
Base Industries reports total inventory at $87,500 on the
balance sheet. Included in this amount are the following:
What is the correct amount for Base Industries’
inventory?
Please show work & explain
Goods that were purchased FOB shipping point that were in transit on the balance sheet date: Good held on consignment for Western Company: Spoiled Goods: $8,850 $7,525 $1,045
Which of the following goods held for sale are not included in the seller's inventory? A Containers to be sold with the goods they contain. B Goods contracted for sale that are not segregated. C Goods shipped on approval that has been accepted. D Raw materials and supplies on hand that will become part of goods held for sale.
Goods on consignment are A) included in the consignee's inventory. B) recorded in a Consignment Out account which is an inventory account. C) recorded in a Consignment In account which is an inventory account. D) all of these