Purchased goods in transit should be included in the ending inventory of the buyer if the goods were shipped FOB shipping point.

Question

Quizplus · Accepted Answer

If goods are shipped FOB shipping point, title and ownership of the goods transfer from the seller to the buyer when the goods are shipped. Therefore, any goods in transit at the end of the accounting period should be included in the buyer's ending inventory.

Purchased Goods in Transit Should Be Included in the Ending