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 an option (b) 3,000 units of inventory in transit from a supplier shipped FOB destination. select an option (c) 1,200 units of inventory sold but being held for customer pickup. select an option (d) 500 units of inventory held on consignment from another company. select an option Click if you would like to Show Work for this question: Open Show Work

Answer 1

Explanation:

Given that the peter company identifies the following items so according to that there are certain things that are excluded or included which are as follows:

a. Since the 900 inventory units shipped by Peete company to another company that reflect inclusion as the company is the owner and owned the goods

b. The inventory units are in transit are excluded as the company does not owned the goods because the goods are on the way

c. The 1,200 units are sold but waiting for customer pickup are excluded because the goods are sold by the Peete company that shows the ownership of the goods are transferred

d. The 500 inventory units held on consignment is also excluded because ownership is not with the Peete company it is transferred to the another company