Which of the following should be not included in a company’s ending inventory?
a.In-transit goods sold and shipped FOB destination.
b.In-transit goods purchased and shipped FOB shipping point.
c.Goods out on consignment.
d.Goods held on consignment.

In FOB destination the title of the goods passes to the buyer when the goods have been delivered. So any in transit goods sold as FOB destination are part of our merchandise inventory.

In FOB shipping point the title of the goods passes to the buyer as soon as the goods have left the seller's shipping dock. So any in transit goods bought as FOB shipping point are part of our merchandise inventory.

Goods that our company passes to other firms in consignment belong to our company until they are sold.

Goods that our company holds in consignment belong to other firms until they are sold, so they should not be included in our merchandise inventory.

Which of the following should be not included in a company’s ending inventory? a.In-transit goods sold and shipped FOB destination. b.In-transit goods purchased and shipped FOB shipping point. c.Goods out on consignment. d.Goods held on consignment.

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Which of the following should be not included in a company’s ending inventory?
a.In-transit goods sold and shipped FOB destination.
b.In-transit goods purchased and shipped FOB shipping point.
c.Goods out on consignment.
d.Goods held on consignment.