Assume that in an annual audit of Westmore Inc. at December 31, 2025, you find the following transactions near the closing date: 1. A special machine, fabricated to order for a customer, was finished and specifically segregated in the back part of the shipping room on December 31, 2025. The customer was billed when the machine was shipped on January 6, 2026. 2. Merchandise costing $6,000 was received on January 3,2026 , and the related purchase invoice recorded January 7 . The invoice showed the shipment was made on December 28, 2025, f.o.b. destination. 3. A packing case containing a product costing $4,500 was standing in the shipping room when the physical inventory was taken. It was not included in the inventory because it was marked "Hold for shipping instructions." Your investigation revealed that the customer's order was dated December 28 . 2025, but that the case was shipped and the customer billed on January 10, 2026. The product was a stock item of your client. 4. Consignment merchandise costing \$1,650 was received and recorded on December 30, 2025. 5. Merchandise received on January 5, 2026, costing $750 was entered in the purchase journal on January 6, 2026. The invoice showed shipment was made f.o.b. supplier's warehouse on December 30, 2025. Because it was not on hand at December 31, it was not included in inventory. Instructions Assuming that each of the amounts is material, state whether the merchandise should be included in the client's inventory, and give your reason for your decision on each item. Assume that in an annual audit of Westmore Inc. at December 31, 2025, you find the following transactions near the closing date: 1. A special machine, fabricated to order for a customer, was finished and specifically segregated in the back part of the shipping room on December 31, 2025. The customer was billed when the machine was shipped on January 6, 2026. 2. Merchandise costing $6,000 was received on January 3,2026 , and the related purchase invoice recorded January 7 . The invoice showed the shipment was made on December 28, 2025, f.o.b. destination. 3. A packing case containing a product costing $4,500 was standing in the shipping room when the physical inventory was taken. It was not included in the inventory because it was marked "Hold for shipping instructions." Your investigation revealed that the customer's order was dated December 28 . 2025, but that the case was shipped and the customer billed on January 10, 2026. The product was a stock item of your client. 4. Consignment merchandise costing \$1,650 was received and recorded on December 30, 2025. 5. Merchandise received on January 5, 2026, costing $750 was entered in the purchase journal on January 6, 2026. The invoice showed shipment was made f.o.b. supplier's warehouse on December 30, 2025. Because it was not on hand at December 31, it was not included in inventory. Instructions Assuming that each of the amounts is material, state whether the merchandise should be included in the client's inventory, and give your reason for your decision on each item