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nika2105 [10]
3 years ago
8

Howard Incorporated is determining ending inventory. In the inventory process, Howard inadvertently miscategorized a $6,000 ship

ment of FOB destination goods in transit from a supplier as FOB shipping point. How will this miscategorization impact Howard’s total inventory?
Social Studies
1 answer:
Harlamova29_29 [7]3 years ago
6 0

Answer:

this miscategorization will impact Howard's total inventory because it will be $6000 too high.

Explanation:

Based on the information provided within the question it can be said that this miscategorization will impact Howard's total inventory because it will be $6000 too high. This is because Howard miscategorized it as FOB shipping point which means that the buyer needs to pay in order to receive the package. Which in inventory terms it would be an income as opposed to a payment which is what it was supposed to be.

If you have any more questions feel free to ask away at Brainly

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