Involves inventory acccounting, answerable by yes or no and why so.

accountant. He wishes to determine your expertise in the area of inventory accounting and therefore asks you to answer the following unrelated questions, a. A company is involved in the wholesaling and retailing of automobile tires for foreign cars. Most ofthe inventory is imported, and it is valued on to the company's records at the acmal inventory cost plus eightin At year-end, the warehousing costs are prorated over cost of goods sold and ending inventory. Should warehousing costs be considered as product cost? b. A certain portion of a company's \"inventory" is composed of obsolete items. Should obsolete items that are not currently consmncd in the production of \" goods or services to be available for sale\" be classied as part of inventory? c. A company purchases airplanes for sale to others, however, until they are sold, the company charters and services the planes. Is it proper to report these airplanes as inventory in the company's nancial statements