Tidwell Company's goods in transit at December 31 include sales made (1) FOB destination
(2) FOB shipping point
And purchases made
(3) FOB destination
(4) FOB shipping point.
Which items should be included in Tidwell's inventory at December 31?
A) Sales made FOB shipping point and purchase made FOB destination
B) (1) and (4)
C) (1) and (3)
D) (2) and (4)

Question

Quizplus · Accepted Answer

Goods sold FOB destination remain in Tidwell's inventory until they reach the buyer, and goods purchased FOB shipping point are included in Tidwell's inventory once they are shipped.

Tidwell Company's Goods in Transit at December 31 Include Sales