Asked by Reyna Nava Sanchez on Jun 18, 2024
Verified
A consignor who has goods out on consignment with an agent should include the goods in ending inventory even though they are not in the possession of the consignor.
Consignor
The name for the manufacturer in a consigned inventory arrangement.
Consignment
An arrangement in which goods are left in the possession of another party to sell, but the consignor retains ownership until the goods are sold.
- Recognize the requirements for including goods in inventory for different scenarios (consignments, goods in transit).
Verified Answer
BS
Brandon SpenceJun 21, 2024
Final Answer :
True
Explanation :
Goods out on consignment with an agent are still the property of the consignor and should be included in their ending inventory even if they are not physically in their possession. This is because the consignor still has legal ownership of the goods until they are sold to a customer by the agent.
Learning Objectives
- Recognize the requirements for including goods in inventory for different scenarios (consignments, goods in transit).