Sleepy Monk offers roasted coffee beans for sale on consignment from Sea Level Roasters.Which company should report the inventory of unsold coffee beans on its balance sheet?

Question

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Consignment inventory refers to goods a company is holding on behalf of the goods' owner.Typically,this arises when a company is willing to sell the goods for the owner (for a fee)but does not want to take ownership of the goods in the event the goods are difficult to sell.This consignment inventory is reported on the balance sheet of Sea Level Roasters,the owner.

Sleepy Monk Offers Roasted Coffee Beans for Sale on Consignment