Company needs to determine the proper amount of inventory to include on the balance sheet as of December 31. Determine which of the following amounts should be included or excluded from Company's year-end inventory. Type an I in the box for include, and an E in the box for exclude.

Transactions where inventory is being purchased: Consider when ownership of inventory transfers, who pays any shipping, and where any shipping costs related to purchases get reported.

A. Cost of goods Company purchased f.o.b destination. The vendor shipped them in December and they arrived in January. (Include / Exclude)

B. Shipping charges on goods Company purchased f.o.b. destination. Items arrived in December and are still in stock.

C. Cost of goods Company purchased f.o.b.shipping point. The vendor shipped them in December and they arrived in January.

Transactions where inventory is being sold: Consider when ownership of inventory transfers, who pays any shipping. and where any shipping costs related to sales are reported.

D. Cost of goods Company sold f.o.b. destination. The goods were shipped in December and they arrived at the customer's location in January.

E. Shipping charges on goods Company sold f.o.b. destination. Items arrived at customer's location in December.