COVID Co's fiscal year ends on December 31. COVID determines inventory quantity by a physical count of inventory on hand at the close of business on December 31. The company's controller has asked fo your help in deciding if the following items should be- included in the year-end inventory count. 1. Goods purchased from a vendor shipped f.o.b. shipping point on December 24 that arrived on January 4. 2. Goods shipped f.o.b. shipping point on Decembe 27 arrived at the customer's location on January 4. 3. Goods purchased from a vendor shipped f.o.b.
COVID Co's fiscal year ends on December 31. COVID determines inventory quantity by a physical count of inventory on hand at the close of business on December 31. The company's controller has asked fo your help in deciding if the following items should be- included in the year-end inventory count. 1. Goods purchased from a vendor shipped f.o.b. shipping point on December 24 that arrived on January 4. 2. Goods shipped f.o.b. shipping point on Decembe 27 arrived at the customer's location on January 4. 3. Goods purchased from a vendor shipped f.o.b.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:COVID Co's fiscal year ends on December 31. COVID
determines inventory quantity by a physical count of
inventory on hand at the close of business on
December 31. The company's controller has asked for
your help in deciding if the following items should be
included in the year-end inventory count.
1. Goods purchased from a vendor shipped f.o.b.
shipping point on December 24 that arrived
on January 4.
2. Goods shipped f.o.b. shipping point on December
27 arrived at the customer's location on January 4.
3. Goods purchased from a vendor shipped f.o.b.
destination on December 27 that arrived on January 5.
4. Freight charges on goods purchased in item 1.
5. Merchandise held on consignment for Virus Co.
6. Goods shipped f.o.b. destination on December 29
that arrived at the customer's location on January 2.
Required:
Determine if each of the six items above should be
included or excluded from the company's year-end
inventory.
(Answer format: 1. Excluded or Included)
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