Asked by Mary Tillman Davis on Jun 11, 2024
Verified
Weinstein Company identifies the following items for possible inclusion in the physical inventory. Indicate whether each item should be included or excluded from the inventory taking.
1. Goods shipped on consignment by Weinstein to another company.
2. Goods in transit from a supplier shipped FOB destination.
3. Goods shipped via common carrier to a customer with terms FOB shipping point.
4. Goods held on consignment from another company.
FOB Destination
A shipping term that indicates the seller is responsible for the goods and shipping costs until the items reach the buyer's specified location.
FOB Shipping Point
A shipping term indicating that the buyer is responsible for the shipping costs and owns the goods in transit once they leave the seller's premises.
- Understand the accounting treatment of goods in transit and on consignment within the scope of inventory accounting.
- Determine the appropriate inclusion or exclusion of items in physical inventory counts.
Verified Answer
WB
Learning Objectives
- Understand the accounting treatment of goods in transit and on consignment within the scope of inventory accounting.
- Determine the appropriate inclusion or exclusion of items in physical inventory counts.