8. Inventory is a. reported under Property, Plant, and Equipment on the balance sheet. b. often reported as a miscellaneous expense on the income statement. c. reported as a current asset on the balance sheet. d. generally valued at the price for which the goods can be sold. 9. In a manufacturing business, inventory that is ready for sale is called a. raw materials inventory. b. work in process inventory. c. finished goods inventory. d. store supplies inventory. 10. Fetherston Company's goods in transit at December 31 include: sales made (1) FOB destination (2) FOB shipping point purchases made (3) FOB destination (4) FOB shipping point Which items should be included in Fetherston's inventory at December 31? a. (2) and (3) b. (1) and (4) c. (1) and (3) d. (2) and (4) 11. A company just starting in business purchased three merchandise inventory items at the following prices: first purchase $64; second purchase $76; and third purchase $68. If the company sold two units for a total of $200 and used FIFO costing, the gross profit for the period would be a. $56. b. $60. c. $62. d. $68.