Asked by
Ali Kh A M Alradwan
on Nov 18, 2024
Verified
Purchased goods in transit, shipped FOB destination, should be excluded from ending inventory of the buyer.
FOB Destination
A shipping term indicating that the seller bears the shipping costs and retains ownership of the goods until they are delivered and accepted by the purchaser.
Ending Inventory
The combined worth of sales-ready goods at the close of a financial period.
Goods In Transit
Items that are in the process of being transported from one location to another, not yet reached the buyer or final destination.
- Understand the significance and methodology of incorporating goods in transit into the final inventory, based on the terms of shipment.
Verified Answer
CV
Learning Objectives
- Understand the significance and methodology of incorporating goods in transit into the final inventory, based on the terms of shipment.