QUESTION 1 Goods in transit are included in a purchaser's inventory: O A At any time during transit. B. When the goods are shipped FOB shipping point. C. When the supplier is responsible for freight charges. OD. If the goads are shipped FOR destination. E. After the half-way point between the buyer and seller. QUESTION 2 Costs included in the Merchandise Inventory account can include all of the following except: A. Invoice price minus any discount. B. Transportation-in. C. Storage OD. Insurance E. Damaged inventory that cannot be sold. QUESTION 3 The understatement of the ending inventory balance causes A. Cost of goods sold to be overstated and net income to be understated. B. Cost af gaads sold to be overstated and net income to be overstated. C. Cost of goods sold to be understated and net income to be understated. D. Cost af gaads sold to be understated and net incarne to be overstated. Cost of goods sold to be overstated and net income to be correct. QUESTION 4 A company had the following purchases during its first year of operations: Purchases January February May 10 units at $120 20 units at $130 15 units at $140 12 units at $150 10 units at $160 September November: On December 31, there were 26 units remaining in ending inventory. These 26 units consisted of 2 from January 4 from February, 6 from May, 4 from September, and 10 from November. Using the specific identification method, what is the cost of the ending inventory? O A $3,500 B. $3,800 C. $3.960 OD 13.280. OE $3,640