fill in charts SIGNMENT SOURCES hap 6 Exercise 63 Gato Inc h

fill in charts

SIGNMENT SOURCES hap 6 Exercise 6-3 Gato Inc. had the following inventory situations to consider at January 31, its year-end. Identify which of the following items should be included in inventory (a) Goods held on consignment for Steele Corp. since December 12. Brief Exercise 5-3 ercise f Excrsise 6-6 (b) Goods shipped on consignment to Logan Holdings Inc. on January S Review Score Review Results by Study Obiestivs (c) Goods shipped to a customer, FOB destination, on January 29 that are still in transit. te) d) Goods shipped to a customer, FOB shipping point, on January 29 that are still in transit. te) Goods purchased FOB destination from a supplier on January 25 that are still in transit. (f) Goods purchased FOB shipping point from a supplier on January 25 that are still in transit. Co) Office supplies on hand at January 31. Sona Inc, All Rights Reserved. A Division of

Solution

a)       do not include inventory( because goods are sent on consignment since December 12 it has to be sold by that time)

b)       include in inventory(because goods are sent on consignment and not yet sold)

c)       include in inventory(because goods are sent on consignment and not yet sold on FOB destination basis and the buyer takes risk and reward only after due delivery)

d)       do not include in inventory(because goods are sent on consignment and not yet sold on FOB shipping point basis and the buyer takes risk and reward from the time of transit)

e)       do not include in inventory(because goods purchased and are still in transit not delivered - FOB destination basis and the buyer takes risk and reward only after due delivery)

f)       include in inventory(because goods purchased and are still in transit not delivered but it is FOB destination basis and the buyer takes risk and reward from the time of transit)

g)      do not include in inventory