The Phoenix Corporation’s fiscal year ends on December 31. Phoenix determines inventory quantity by a physical count of inventory on hand at the close of business on December 31. The company’s controller has asked for your help in deciding if the following items should be included in the year-end inventory count. 

1. Merchandise held on consignment for Trout Creek Clothing. 

2. Goods shipped f.o.b. destination on December 28 that arrived at the customer’s location on January 4. 

3. Goods purchased from a vendor shipped f.o.b. shipping point on December 26 that arrived on January 3. 

4. Goods shipped f.o.b. shipping point on December 28 that arrived at the customer’s location on January 5. 

5. Phoenix had merchandise on consignment at Lisa’s Markets, Inc. 6. Goods purchased from a vendor shipped f.o.b. destination on December 27 that arrived on January 3. 7. Freight charges on goods purchased in 3. 

Required: 

Determine if each of the items above should be included or excluded from the company’s year-end inventory.