1. At year-end, Martinez Co. had shipped $8,700 of merchandise FOB shipping poin

Question

1. At year-end, Martinez Co. had shipped $8,700 of merchandise FOB shipping point to Endor Co. Which company should include the $8.700 of merchandise in transit as part of its year-end inventory? Endor Co Martinez Co. 2. Walberg Co. shipped $2,200 of signed baseball cards to Hemming. Hemming agreed to sell the cards for Walberg, but Walberg will retain ownership of the cards until sold. a. Identify the consignor O Walberg O Hemming b. Identify the consignee. Walberg O Hemming c.Which company should include any unsold goods as part of its inventory O Hemming O Walberg

Explanation / Answer

1. As the saleconcluded at the Free on board shipping point the buyer should include the the merchandise in their inventory thus Ender Co. will include the merchandise as stock in transit as a part of their inventory

2a. The consignor = Walberg (The Company which transferred goods)

2b. The consignee = Hemming (The Company which is making sales on behalf of the other company)

2c. Unsold Goods as a part of their inventory = Walberg (The Owner of the inventory)

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