Is dr total inventory correct

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Reference no: EM132751588

Problem 1: DR Inc. sells art supplies. At the end of the period, DR's total inventory is $23,200. It has $6,200 of paints and $8,400 of brushes on site. It also has goods in transit including $1,200 of canvas sold and shipped FOB destination to a customer, $2,300 of pastels purchased and shipped FOB shipping point from one supplier, and $5,100 of water colors purchased and shipped FOB destination from another supplier. Is DR's total inventory correct? Why?

A : It is $1,200 too high because the canvases that were shipped FOB destination are considered part of the customer's inventory, not DR's inventory.
B : It is $5,100 too high because the water colors that were shipped FOB destination are considered part of the supplier's inventory, not DR's inventory.
C : It is $2,300 too high because the pastels that were shipped FOB shipping point are considered part of the supplier's inventory, not DR's.
D : It is correct because all items on site, FOB shipping point, and FOB destination in this scenario are part of DR's inventory.

Reference no: EM132751588

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