Ending inventory plus cost of goods sold minus purchases results in beginning inventory: $20,000 + $560,000 -$540,000 = $40,000.

Inventory should include all goods owned by the company regardless of whether the company holds physical possession or not. Goods held on consignment are owned by others and should not be included.

Which of the following should not be included in the physical inventory of a company?

All of the answer choices are correct.

Goods shipped on consignment to another company

Goods held on consignment from another company

Goods in transit from another company shipped FOB shipping point

Last in, last-out is not one of the inventory costing methods.

Which of the following is not an acceptable inventory costing method?

Last-in, first-out

First-in, first-out

Last-in, last-out

Average cost

Ending inventory plus cost of goods sold minus purchases results in beginning inventory: $20,000 + $560,000 -$540,000 = $40,000.

Cost of goods purchased is $540,000, ending inventory is $20,000, and cost of goods sold is $560,000. How much is beginning inventory?

$20,000

$0

$40,000

$10,000