lobal Industries is a merchandising company that sells goods on consignment. Currently, Global has $14,000 worth of consignment goods in its warehouse that it included in its inventory. What effect will this have on Global's total inventory?

Question

Business

Madeleine Buchanan

28 December, 21:44

lobal Industries is a merchandising company that sells goods on consignment. Currently, Global has $14,000 worth of consignment goods in its warehouse that it included in its inventory. What effect will this have on Global's total inventory?

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Answers (1)

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Briana Henson · Answer 1

Inventory will be $14,000 higher than expected.

Explanation:

Selling goods on consignment means that goods that do not belong to a company is being sold by them. Consignment is when the owner of goods gives the right to custody or care of the goods while retaining ownership of the same.

In this case Global has $14,000 worth of consigned goods in its warehouse that it does not own. So the total inventory they will have will be $14,000 above what they are expecting in their own stock.