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Goods held on consignment are included in the inventory of

01/10/2021 Client: muhammad11 Deadline: 2 Day

Presented below is a list of items that may or may not be reported as inventory in a company's December 31 balance sheet. Indicate which of these items would typically be reported as inventory in the financial statements, and if an item should not be reported as inventory, indicate how it should be reported in the financial statements. 1. Goods sold where large returns are predictable. 2. Short-term investments in stocks and bonds that will be resold in the near future. 3. Office supplies. 4. Goods sold f.o.b. shipping point that are in transit at December 31. 5. Goods sold on an installment basis (bad debts can be reasonably estimated). 6. Factory supplies. 7. Freight charges on goods purchased. 8. Goods out on consignment at another company's store. 9. Goods sold f.o.b. destination that are in transit at December 31. 10. Interest costs incurred for inventories that are routinely manufactured. 11. Goods purchased f.o.b. shipping point that are in transit at December 31. 12. Goods held on consignment from another company. 13. Materials on hand not yet placed into production by a manufacturing firm. 14. Costs identified with units completed by a manufacturing firm, but not yet sold. 15. Goods purchased f.o.b. destination that are in transit at December 31. 16. Costs incurred to advertise goods held for resale. 17. Raw materials on which a manufacturing firm has started production, but which are not completely processed. 18. Goods sold to another company, for which our company has signed an agreement to repurchase at a set price that covers all costs related to the inventory.

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