ANSWERS TO QUESTIONS
$120,000 – ($120,000 X .10) = $108,000, cost of goods purchased. $1,100,000 + $69,000 = $1,169,000. The $69,000 of goods in transit on which title had passed on December 24 (f.o.b. shipping point) should be added to 12/31/06 inventory. The $29,000 of goods shipped (f.o.b. shipping point) on January 3, 2007, should remain part of the 12/31/06 inventory. Because no date was associated with the ... ................
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