Question: The following items were in transit to or from Power

The following items were in transit to or from Power Corp. on December 31, 2009.
• Goods costing $4,000weresentFOB shipping point from Power Corp. to a customer.
• Goods costing $2,580 were sent FOB destination to Power Corp. from a vendor.
• Goods costing $2,960 were sent FOB destination from Power Corp. to a customer.
• Goods costing $1,957weresentFOB shipping point to Power Corp. from a vendor.
Required:
(a) Which of these items should Power Corp. include in its December 31, 2009, inventory?
(b) Explain the rationale for either including or excluding the items.



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  • CreatedMarch 27, 2015
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