Helgeson Company has identified the following items for possible inclusion when taking a physical

Let's begin with the answers, what are they? From there I can help you rationalize as to why...

*was also confused about the consignment term
1. (Included)
2. (Not Included)
3. (Not Included)
4. (Not Included)
5. Not a 100% sure, but my answer key says it's included but on diff websites people say that its not included.
I was taught so far on this topic, that when it comes to determining quantities, the determination of inventory quantities involves
1. taking a physical inventory of goods on hand and 2. determining the ownership of goods.
Taking a physical inventory involves counting, weighing, or measuring each kind of inventory on hand.
There is other info as well on taking a physical inventory, to which in order to decrease errors in taking the inventory, a company should adhere to internal control principals by adopting the following procedures...etc.

See if this helps:

I have the same answers on my answer key, except the last one says it is included. I was still confused as to why these were the answers, it just didn't make sense to me.

The last one makes sense to me because if the goods are in delivery, they're no longer in your possession. If they're not in your possession, it means they're sold and cannot be counted in the inventory.

That is true, thanks... Mind explaining the other 4?

Sure

#3, #4: You can't account for goods that are not yours.

#2 is similar to #5.

Hope that helps!

How about the 1st one, I'm confused with the word consignment?

Means the company in question, does that make sense?

I just double checked number 5 with my teacher and apparently the goods in transit to a customer should be included in inventory as title does not pass to the customer until they reach the destination. What does this mean?

Post Merge: 3 years ago

Hold on actually I just realized the answers from the picture are actually different, let me tell you the answers for the rest of those, sorry about that, so I think you're incorrect, I believe.
1. Ownership of the goods belongs to the consignor (Helgeson). Thus, these goods should be included in Helgeson’s inventory.
2. The goods in transit should not be included in the inventory count because ownership by Helgeson does not occur until the goods reach its warehouse.
3. The goods being held belong to the customer. They should not be included in Helgeson’s inventory.
4. Ownership of these goods rests with the other company (the consignor). These goods should not be included in Helgeson’s inventory.
5. The goods in transit to a customer should be included in inventory as title does not pass to the customer until they reach the destination.

Post Merge: 3 years ago

Overall, just don't really understand what they mean by their explanation of why its included/not included, just didn't make sense to me.

Fair enough, I suppose it isn't gone entirely until it passes the company's return policy. That I can understand, but I stand by my other explanations.

So those answers I've told you, you think they are incorrect?
And also I'm getting confused with the part of these answers when they say, "as title does not pass." Sorry for bugging you, my teacher just doesn't explain very well.

Meaning the ownership "title".

For example, if I own a car, my title is "owner". If I sell my car to you, your title becomes "owner".