Goods in Transit
Gravais Company made two purchases on December 29, 2016. One purchase for $3,000 was shipped FOB destination, and the second for $4,000 was shipped FOB shipping point. Neither purchase had been received nor paid for on December 31, 2016.
Required:
Which of these purchases, if either, does Gravais include in inventory on December 31, 2016? What is the cost?
Purchase	Included in Inventory?
FOB destination
FOB shipping point
What costs are assigned to a purchase?
Type of costs	Assigned to purchase cost?
Purchase discounts
Insurance during shipment
Applicable taxes
Temporary storage
Receiving and unpacking