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Archy [21]
4 years ago
6

Perpetual Inventory Using FIFO

Business
1 answer:
maks197457 [2]4 years ago
7 0

The cost of goods sold on October 24 is $4830

The perpetual inventory as on October 31 is 70 units of value as $2310

Explanation:

The order of events in the given scenario,

  • Oct. 1 - Inventory 200 units at $30
  • Oct. 7 - Sold 160 units
  • Oct. 7 - Remaining Inventory 40 units at $30
  • Oct. 15 - Purchase 180 units at $33
  • Oct. 15 - Total Inventory 40 units at $30 + 180 units at $33
  • Oct. 15 - Total Inventory 220 units and value is $7140 ($30 * 40 + $33 * 180)
  • Oct. 24 - Sold 150 units
  • Oct. 24 - Taken 40 units from the purchase of $30 and 110 units from the purchase of $33 by using FIFO logic
  • Oct. 24 - Total cost of goods sold is $4830

So, cost of goods sold on October 24 is $4830

  • Oct. 24 - Total Inventory 70 units and value is ($7140  - $4830) = $2310

The perpetual inventory value as on October 31 is $2310

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Answer:

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1) Warranty of Title

a) No Liens: Sellers usually give assurance to the customers that they are selling goods free from debt.

As in the case of HearIT, he has violated this contract by selling goods to Judy that are later repossesed by the manufacturer because the goods were bought on credit and HearIT failed to pay the manufacturer.

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Except where disclaimed, a seller warrants that the goods delivered are free from any copyright, trademark, or patent claims by a third party.

Except where disclaimed, sellers warrant that they have good and valid title to the goods being sold and that they have the power to rightfully transfer title to the buyer. In other words, the goods aren’t stolen.

Except disclaimed, sellers warrant that the goods they are selling are free of any liens -- that is, any encumbrance on the goods or other property to satisfy a debt or protect a claim for payment of a debt (e.g., a security interest on personal property or a mortgage on real property).

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Answer:

e. Responsiveness

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