If a company has goods in transit at the end of the year that were shipped FOB shipping point, how should these goods be accounted for on the company's books at the end of the year? a.The goods should be included in the inventory value at the end of the year. b.Half of the value of the goods in transit should be included in the inventory value at the end of the year. c.The goods should be excluded from the inventory value at the end of the year. d.The goods should be considered held for sale on consignment at the end of the year.

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A: The question is based on the concept of Financial Accounting.

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A: Year ending inventory means value of inventory held at the end.

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A: Inventory Turnover ratio : This ratio is the relationship between Cost of goods sold and Average…

Q: inventory

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A:

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A: In this numerical has covered the concept of Inventory Valuation .

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Q: Gato Inc. had the following inventory situations to consider at January 31, its year-end.(a) Goods…

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Q: December 31 under each of the following methods?

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A: Periodic inventory system: The method or system of recording the transactions related to inventory…

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Q: 1. How much should be the inventory to be reported in the year-end statement of financial position?…

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.