Sm Finacc

CHAPTER 4

INVENTORIES

PROBLEMS

4-1. (Hamster Company)

| |Include |Exclude |

|Goods displayed in the store |√ | |

|Goods stocked in the warehouse, not covered by any sales contract |√ | |

|Goods purchased, in transit, shipped FOB seller |√ | |

|Goods purchased, in transit, shipped FOB destination | |√ |

|Freight cost on goods received, goods are still unsold |√ | |

|Goods held on consignment | |√ |

|Goods out on consignment |√ | |

|Goods out to customers on approval |√ | |

|Goods in the hands of traveling salesmen |√ | |

|Goods sold with a buyback arrangement for the full selling price and |√ | |

|other costs incurred by the buyer | | |

|Unused factory supplies and indirect materials |√ | |

|Goods which require additional processing |√ | |

|Direct materials stocked in the warehouse |√ | |

|Storage costs of goods completed | |√ |

|Insurance...