Question

Gerald Corporation purchases inventory FOB shipping point. The shipping costs are $300. The shipping costs are

A- included in Gerald's inventory.
B- treated as a selling expense.
C- paid by the supplier.

Answer 1

The shipping costs for inventory purchased FOB shipping point are included in Gerald's inventory.

Step-by-step explanation:

The shipping costs for inventory purchased FOB shipping point are typically paid by the buyer, in this case, Gerald Corporation. This means that the shipping costs of $300 would be treated as part of Gerald's inventory cost and included in the value of the inventory. Therefore, the correct answer is A - included in Gerald's inventory.