Ending inventory is equal to the cost of items on hand plus

Question

Quizplus · Accepted Answer

DMerchandise in transit sold to customers with terms FOB destination is still owned by the seller until it reaches the customer's location, so it is included in the seller's ending inventory. Similarly, merchandise purchased from buyers in transit with terms FOB destination is not yet owned by the buyer until it reaches their location, so it would not be included in the buyer's ending inventory.

Ending Inventory Is Equal to the Cost of Items on Hand