Manufacturing Firms include all costs which are traceable to the production of the product in onde of 3 inventory accounts: Raw Materials, Work in Process and Finished Goods. Question II Presented below is a list of items that may or may not be reported as inventory in a company's December 31 balance sheet. Indicate which of these items would typically be reported as inventory in the financial statements. If an item should not be reported as inventory, indicate how it should be reported in the financial statements. Item in Financial Financial Statement Statement 1. Goods out on consignment at another company's store. 2. Goods sold on an installment basis (bad debts can be reasonably estimated). 3. Goods purchased fo.b. shipping point that are in transit at December 31 4. Goods purchased fo.b. destination that are in transit at December 31 5. Goods sold to another company, for which our company has signed an agreement to repurchase at a set price that covers all costs related to the inventory 6. Goods sold where large returns are predictable. 7. Goods sold fo.b. shipping point that are in transit at December 31. 8. Freight charges on goods purchased 9 Interest costs incurred for inventories that are routinely 10. Costs incurred to advertise goods held for resale. 11. Materials on hand not yet placed into production by a manufactured manufacturing firm. 12. Office supplies