. 12. days d. 68.5 days 15. Inventory that the buyer purchases that is in transi

Question

. 12. days d. 68.5 days 15. Inventory that the buyer purchases that is in transit (with the shipper and not in possession o the l which is shipped F.O.B. shipping point should be: a. Included in the inventory of the buyer b. Included in the inventory of the shipping company None of these Included in the inventory of the seller c. d. Use the following data to determine the amount that total inventory should be reported on the balan the lower of cost or market rule, applied on an individual item basis 16. CommodityInventory Quantity Unit Cost Price Unit Market Price 200 0L00 S7 100 /400 $14Go $16 / a. $6,800 b. $6,600 $5,200 $6,000

Explanation / Answer

1) Solution: included in the inventory of the buyer

Explantion: FOB shipping point should be included in the inventory of the buyer; and FOB destination should be included in the inventory of seller

2) Solution: $5,200

Working: 200*7 + 100*14 + 400*6 = 1400 + 1400 + 2400 = 5200

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