Goods in transit are included in inventory
A) At any time in transit
B) When the purchaser is responsible for paying freight charges
C) When the supplier pays the freight charges
D) When ownership has passed to the purchaser
E) When the purchaser is responsible for paying freight charges and when ownership has passed to the purchaser

Question

Quizplus · Accepted Answer

Goods in transit should be included in inventory when the purchaser is responsible for paying freight charges and when ownership of the goods has passed to the purchaser. This is because the purchaser has legal control and risks associated with the goods. The costs associated with the transportation of the goods should also be added to the cost of inventory.

Goods in Transit Are Included in Inventory