Asked by
Charlie Voigts
on Nov 12, 2024
Verified
Purchased goods in transit, shipped FOB destination, should be excluded from ending inventory of the buyer.
FOB Destination
A term specifying that the seller is responsible for the goods and the cost of shipping until they are received by the buyer at the destination.
Ending Inventory
The cumulative worth of all remaining inventory a company holds at the conclusion of a financial period.
- Determine the allocation of ownership and liability for shipping expenses under FOB shipping point and FOB destination conditions.
Verified Answer
JT
Learning Objectives
- Determine the allocation of ownership and liability for shipping expenses under FOB shipping point and FOB destination conditions.
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