INVENTORIES

- Assets held for sale in the ordinary course f business, in the process of production for such sale or in the form of
materials or supplies to be consumed in the production process or in rendering services
- Example: Land, in your POV since you are selling Land it’s is consider as inventory and not a Property

Goods Includible in The Inventory

When the Company has the title, regardless of the location of the inventory

You have to look who really owns the goods

A) Goods owned and on hand

B) Goods in transit and sold FOB Destination (the title of the goods passes on the point of destination)
C) Goods in transit and purchased FOB shipping Point (hindi pa nakakdating ang inventory pero ikaw ang bumili
through FOB shipping point means the title of the goods passes at the shipping point)
D) Goods out on consignment (paninda na ipinabenta mo sa consignee)
E) Goods in the hand of salesmen or agents
F) Goods held by the customers on approval or on trial

FOB Shipping Point

- The title is passed to the buyer at the point of shipment

- The buyer is responsible for the delivery charges
- Buyer’s Pov : Malayo ka pa lang alam kong akin ka na

FOB Destination

- The title is passed to the buyer upon receipt of goods

- The seller is responsible for the delivery charges
- Buyer’s Pov: Maghihintay ako hanggang maaari na kitang tawaging akin

Consignment – marketing technique whereby a company (called the consignor) request another entity to allow them
to sell their goods, serving as an agent (called the consignee)

Perpetual Inventory

Pe