PART 1 (Inventoriable Costs)

(Adapted from Intermediate Accounting Textbook)

Presented below is a list of items that may or may not be reported as inventory in a companys December 31 statement of financial statement. 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.

No.	Given information		To be reported or not to be reported		If not, how it should be reported in the FS
8.	Freight charges on goods purchased.
9.	Interest costs incurred for inventories that are routinely manufactured
10.	Materials on hand not yet placed into production by a manufacturing firm.
11.	Costs incurred to advertise goods held for resale.
12.	Office supplies
13.	Raw materials on which a manufacturing firm has started production but which are not completely processed.
14.	Factory supplies
15.	Goods held on consignment from another company
16.	Costs identified with units completed by a manufacturing firm but not yet sold
17.	Goods sold FOB destination that are in transit at December 31