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Kelly Corporation shipped goods to a customer f.o.b. destination on December 29, 2021. The goods arrived at the customer’s location in January. In addition, one of Kelly’s major suppliers shipped goods to Kelly f.o.b. shipping point on December 30. The merchandise arrived at Kelly’s location in January. Which shipments should be included in Kelly’s December 31 inventory?

Respuesta :

abiolataiwo2015

Answer:

Both shipments should be included in inventory.

Explanation:

Explanation:

Goods shipped to customer on Dec. 29, 2021 and Goods shipped to Kelly on Dec. 30, 2021 are both shipments that should be included in inventory due to the fact that the goods shipped to a customer f.o.b. destination did not arrive at the customer’s location until after the fiscal year-end which is why they have to belong to Kelly until they arrive at the customer’s location.

Hence the title to the goods shipped from a supplier to Kelly on December 30, f.o.b. shipping point, changed hands on December 30.

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