Answered

Morgan Enterprises’ is doing inventory. In the inventory process, Morgan inadvertently miscategorized a $14,000 shipment of FOB shipping point goods in transit to a customer as FOB destination. How will this miscategorization impact Morgan’s total inventory?

Answer :

oopsydaisy

Answer: This miscategorization will impact Morgan's total inventory by making the inventory be $14,000 too high.

Explanation:

The goods that are in transit to the customers FOB shipping point are going to be part the inventory of the customer. This is not the inventory of the company that is selling the goods.

If they are listing the goods with the FOB destination this can then make the goods a part of the sellers inventory. This would result in the inventory being higher than it should be.

Other Questions