Counting inventory that is in transit on December 31 that was shipped from the supplier FOB shipping point would not cause any error in the final inventory valuation.

Question

Quizplus · Accepted Answer

Inventory shipped FOB shipping point is considered owned by the buyer once it leaves the supplier's location, so it should be included in the buyer's inventory count even if it is in transit.

Counting Inventory That Is in Transit on December 31 That