Unit 7 - Help! - Transfers between divisions

I am currently preparing to take my Unit 7 skills test. I am very confused about one thing though: Transfers between divisions.
I understand that when consolidating the accounts you must take out any transfers between divisons, purchases and sales, they must cancel each other out. But how do you treat goods that are in transit?
For example division A sold 100 to division B, but B only recorded 80 because the rest were in transit at year end.
Do you have any ideas or guidence for me?
I understand that when consolidating the accounts you must take out any transfers between divisons, purchases and sales, they must cancel each other out. But how do you treat goods that are in transit?
For example division A sold 100 to division B, but B only recorded 80 because the rest were in transit at year end.
Do you have any ideas or guidence for me?
Comments
In your example Co B would include as stock at year end.
If your goods in transit between two divisions haven't been received by the other division would you increase your stock figure?
Then if your doing an consolidated P + L would you put the increase in stock figure in there?
Thanks
Liz
Ana Silvia
struggling with transfers between divisions I understand that the transfer is added/deducted to closing stock values, but how does it effect purchases. how can transfers be more than purchases.
the other thing im stuck on is what to include in a transfer report. simulation tonite help!