Asked by
Marco Primerano
on Oct 16, 2024
Verified
Sandoval needs to determine its year-end inventory.The warehouse contains 20,000 units,of which 3,000 were damaged by flood and are not sellable.Another 2,000 units were purchased from Markor Company,FOB shipping point,and are currently in transit.The company also consigns goods and has 4,000 units at a consignee's location.How many units should Sandoval include in its year-end inventory?
A) 29,000
B) 21,000
C) 23,000
D) 19,000
E) 26,000
FOB Shipping Point
FOB Shipping Point, or Free On Board Shipping Point, means that the buyer takes responsibility for shipping costs and liability once the goods leave the seller's premises.
Year-End Inventory
The total value of a company's inventory at the end of its fiscal year.
Consignee's Location
The address or place where goods are to be delivered, typically belonging to the person or entity that will receive the goods.
- Understand the considerations for including items in merchandise inventory, accounting for special situations such as goods in transit, consigned goods, and damaged goods.
Verified Answer
MM
Learning Objectives
- Understand the considerations for including items in merchandise inventory, accounting for special situations such as goods in transit, consigned goods, and damaged goods.