Ownership passes to the buyer when the public carrier accepts the goods if the goods are shipped Entry field with correct answer FOB shipping point. FOB buyer. FOB destination. FOB shipper.

FOB shipping point. More test answers on https://studyhippo.com/acc-255-chp-6/

Which of the following should not be included in the physical inventory of a company? Entry field with correct answer Goods held on consignment from another company Goods in transit from another company shipped FOB shipping point All of the answer choices are correct. Goods shipped on consignment to another company

Goods held on consignment from another company More test answers on https://studyhippo.com/acc-255-chp-6/

If goods in transit are shipped FOB shipping point

the buyer has legal title to the goods until they are delivered More test answers on https://studyhippo.com/acct-section-2-test/

FOB shipping Point p. 260

Situation in which the buyer takes ownership (title) to the goods at the shipping point and the buyer pays the freight. More test answers on https://studyhippo.com/accounting-merchandising-operations-chap-5/

Ownership passes to the buyer when the public carrier accepts the goods if the goods are shipped: More test answers on https://studyhippo.com/chp-6-wileyplus-self-test/

Fetherston Company’s goods in transit at December 31 include: Sales Made Purchases Made (1) FOB Destination (3) FOB Destination (2) FOB Shipping Point (4) FOB Shipping Point Which items should be included in Fetherston’s inventory at December 31? A. (1) and (3) B. (1) and (4) C. (2) and (3) D. (2) and (4)

B More test answers on https://studyhippo.com/ch-6-quiz/

Which of the following should not be included in the physical inventory of a company? a. Goods held on consignment from another company. b. Goods in transit from another company shipped FOB shipping point. c. Goods shipped on consignment to another company. d. All of these answer choices should be included.

a More test answers on https://studyhippo.com/practice-exam-2-acct-2301/

FOB Shipping point or FOB factory

buyer accepts ownership when goods depart seller’s place of business. Buyer is responsible for paying shipping costs and bearing risk of damage or loss when goods are in transit More test answers on https://studyhippo.com/act-300-module-3-chapter-5-notes/

On December 31 of the current year, Hewett Company reported an ending inventory balance of $215,000. The following additional information is also available: • Hewett sold goods costing $38,000 to Trump Enterprises on December 28 and shipped the goods on that date with shipping terms of FOB shipping point. The goods were not included in the ending inventory amount of $215,000 because they were not in Hewett’s warehouse. • Hewett purchased goods costing $44,000 on December 29. The goods were shipped FOB destination and were received by Hewett on January 2 of the following year. The shipment was a rush order that was supposed to arrive by December 31. These goods were included in the ending inventory balance of $215,000. • Hewett’s ending inventory balance of $215,000 included $15,000 of goods being held on consignment from Rumsfeld Company. (Hewett Company is the consignee.) • Hewett’s ending inventory balance of $215,000 did not include goods costing $95,000 that were shipped to Hewett on December 27 with shipping terms of FOB destination and were still in transit at year-end. Based on the above information, the correct balance for ending inventory on December 31 is: A. $194,000 B. $209,000 C. $200,000 D. $171,000 E. $156,000

E Start with beginning inventory of $215,000. The information in the first bullet point was handled correctly, although the explanation for why is incorrect. No adjustment. For the second bullet point, the $44,000 of goods should not have been included in ending inventory since the goods were shipped FOB destination. Subtract $44,000. For the third bullet point, ending inventory should not include goods held on consignment from another company. Subtract $15,000. The information in the fourth bullet point was handled correctly. No adjustment. $215,000 – $44,000 – $15,000 = $156,000. More test answers on https://studyhippo.com/acc-chap-6/