10. Which of the following should NOT be included in the physical inventory of a company?a.Goods held on consignment from another companyb.Goods in transit from another company shipped FOB Shipping Pointc.Goods shipped on consignment to another company d.All of these answer choices should be included11. The term FOB denotes:12. Goods held on consignment are13. When a perpetual inventory system is used, which of the following is the purpose of taking a physical inventory?14. Which statement is FALSE?a.Taking a physical inventory involves actually counting, weighing, or measuring each kind of inventory on handb.No matter whether a period or perpetual inventory system is used, all companies
need to determine inventory quantities at the end of each accounting periodc.An inventory count is generally more accurate when goods are not being sold or received during the countingd.Companies that use a perpetual inventory system must take a physical inventory to determine the COGS for the accounting period 15. Reeves Company is taking a physical inventory on March 31, the last day of its fiscal year. Which of the following must be included in this inventory count?16. At December 31, 2022, Howell Company’s Inventory records indicated a balance of $878,000. Upon further investigation, it was determined that this amount included the following:●168,000 in inventory purchases made by Howell shipped from seller 12/27/22 terms FOBDestination, but not due to be received until January 2●$111,000 in goods sold by Howell with terms FOB Destination on December 27. The goods are not expected to reach their destination until January 6●$9,000 of goods received on consignment from Westwood CompanyWhat is Howell’s correct ending inventory balance at December 31, 2022?