At the year-end inventory count, if goods in transit are shipped FOB shipping point, they should be included in the inventory count of:

Question

Quizplus · Accepted Answer

When goods are shipped FOB (Free On Board) shipping point, the title and risk of loss pass from the seller to the buyer when the goods are handed over to the carrier. Therefore, these goods should be included in the inventory count of the buyer, as they are considered to be owned by the buyer during transit.

At the Year-End Inventory Count, If Goods in Transit Are