Question

Peete Company identifies the following items for possible inclusion in the physical inventory. Indicate whether each item should be included or excluded from the inventory taking. (a) 900 units of inventory shipped on consignment by Peete to another company. Select between included or excluded from the inventory taking (b) 3,000 units of inventory in transit from a supplier shipped FOB destination. Select between included or excluded from the inventory taking (c) 1,200 units of inventory sold but being held for customer pickup. Select between included or excluded from the inventory taking (d) 500 units of inventory held on consignment from another company

Answer 1

Answer:

Indicate whether each item should be included or excluded from the inventory taking.

A)Include from the inventory

B)Exclude from the inventory

C)Exclude from the inventory

D)Exclude from the inventory

Explanation:

A)Include from the inventory

Consignment inventory is a business arrangement where the consignor agrees to give their goods to a consignee without the consignee paying for the goods up front

B)Exclude from the inventory

"Freight On Board" is a shipping term used in retail to indicate who is responsible for paying transportation charges.

C)Exclude from the inventory

The inventory was already sold

D)Exclude from the inventory

The other company is holding it until the buyer pays