Reference no: EM132572986

The following information relating to inventory was provided by Carter Company. Consigned inventory of $3,000 was included in the Carter Company's physical inventory count.

Goods in transit to customers, FOB destination point, of $7,000 were not included in the physical count of inventory.

Goods in transit from suppliers, FOB shipping point, of $2,000 were included in the physical inventory count.

Question 1: Based on this information, Carter Companies Cost of Goods Sold is

Group of answer choices

Option 1: Overstated $10,000

Option 2: Understated $10,000

Option 3: Understated $7,000

Option 4: Overstated $4,000

Option 5: Understated $2,000

Option 6: Understated $4,000

Option 7: Cannot be determined from the information given