Grey Manufacturing Had the Following Transaction

question 28

Multiple Choice

Grey Manufacturing had the following transaction:
.Grey ordered $67,000 of inventory on December 30, 2017. The inventory was shipped on December 31, 2017, with the terms FOB destination. Grey received the inventory on January 3, 2018.
If Grey included all these items in it ending inventory of 12/31/17, which of the following is the best statement regarding this treatment?

• A)Grey made no mistake and rightfully included the items in its ending inventory for 12/31/17.
• B)Grey made a mistake and wrongly overstated ending Inventory.
• C)Grey made a mistake and wrongly overstated Cost of Goods Sold.
• D)Grey made a mistake and wrongly overstated Retained Earnings.

---

Definitions:

Classification

The process of organizing or sorting items into categories based on their attributes or characteristics.

Sample Surveys

Research methods that collect data from a subset of a population to make inferences about the entire population.

Retirement Age

The age at which a person is typically expected to cease working and is eligible to receive retirement benefits or pensions.

Profession

A type of occupation that requires specialized training, education, or skill, often associated with a particular field or industry.