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The following items were in transit to or from Power Corp. on December 31, 2009 Goods costing $4000 were sent FOB shipping point from Power

The following items were in transit to or from Power Corp. on December 31, 2009

Goods costing $4000 were sent FOB shipping point from Power Corp. to a customer

Goods costing $2580 were sent FOB destination to Power Corp. from a vendor

Goods costing $2960 were sent FOB destination from Power Corp. to a customer

Goods costing $1957 were sent FOB shipping point to Power Corp. from a vendor.

a) Which of these items should Power Corp. include in its December 31, 2009 inventory?

b) Explain the rationale for either including or excluding the items.

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