Identify Goods to Be Included in Inventory

Patterson Company has the following items at year-end. Identify which items should be included in Pattersons year-end inventory count.

1. Goods held on consignment by Sell For You Company.

2. Goods held by Patterson on consignment that will be sold for another company.

3. Goods in transit sent to a client F.O.B. shipping point.

4. Goods in transit sent to a client F.O.B. destination.

Possible Answers:

1. 1 & 4

2. 1 2 3 & 4

3. 1 2 & 4

4. 1 & 3