Beyer Company Bought Inventory FOB Shipping Point from Sellar Company

question 168

Multiple Choice

Beyer Company bought inventory FOB shipping point from Sellar Company for $4,000 cash,including shipping charges.On December 31,the last day of the accounting year,the goods were on a truck owned by Common Carrier,Inc.,and not expected to arrive until January 3.Which company should include these goods in its December 31 inventory?

• A) Beyer should include the $4,000 in its inventory
• B) Beyer owns the inventory, but Common Carrier has possession of it. Each of them should include half of the inventory, $2,000 each
• C) Common Carrier should include the $4,000 in its inventory, since the inventory is on its truck
• D) Beyer owns the inventory, but Common Carrier has possession of it. Neither of them can include the $4,000 in its December 31 inventory

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Definitions:

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Prejudice

Preconceived opinion or bias against an individual or group without sufficient knowledge, reason, or direct experience.

Attitude

A psychological tendency that is expressed by evaluating a particular entity with some degree of favor or disfavor.

False Consensus Effect

The tendency to overestimate how much other people share our beliefs, attitudes, and behaviors.