Final answer:
False. Goods shipped FOB destination should not be excluded from ending inventory.
Step-by-step explanation:
False. Purchased goods in transit shipped FOB destination should not be excluded from ending inventory.
FOB destination means that the seller bears the transportation costs and the risk of loss until the goods reach the buyer's specified destination. In this case, the goods are still in transit and have not yet reached the destination, but they are owned by the buyer. Therefore, they should be included in the buyer's ending inventory.
For example, if a company purchased goods shipped FOB destination on December 30th, and the goods arrived at the buyer's location on January 5th, the goods should be included in the buyer's ending inventory as of December 31st, even though they have not physically arrived yet.