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:

Behavior

Acting in a way that reflects the true self; part of authenticity.

John Watson

An American psychologist who established the psychological school of behaviorism, emphasizing the study of observable behavior over the study of the mind.

Ivan Pavlov

A Russian physiologist known for his work in classical conditioning, particularly for his experiments with dogs and the concept of the conditioned reflex.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.