Shippers Company had the following inventory situations to consider at January 31, its year end:
1. Goods held on consignment for Mail Boxes Etc. since December 22
2. Goods shipped on consignment to Rinehart Holdings on January 5, and still on hand
3. Goods that are still in transit and were shipped to a customer, FOB destination, on January 28
4. Goods that are still in transit and were shipped to a customer, FOB shipping point, on January 27
5. Goods that are still in transit and were purchased from a supplier, FOB destination, on January 25
6. Goods that are still in transit and were purchased from a supplier, FOB shipping point, on January 29
7. Freight costs due on goods in transit from item 6 above
8. Freight costs due on goods in transit from item 3 above
9. Office supplies on hand at January 31
Instructions
Which of the above items should Shipper include in its inventory? Provide an explanation.