Checkers Uses the Periodic Inventory System

question 69

Multiple Choice

Checkers uses the periodic inventory system. For the current month, the beginning inventory consisted of 4,800 units that cost $12 each. During the month, the company made two purchases: 2,000 units at $13 each and 8,000 units at $13.50 each. Checkers also sold 8,600 units during the month. Using the average cost method, what is the amount of cost of goods sold for the month?

• A) $111,370.
• B) $115,800.
• C) $107,900.
• D) $111,800.

Distinguish between different shipping terms such as FOB and FAS.

Identify who bears the risk of loss under different contract types.

Comprehend how title and risk of loss transfer in various sales contracts.

Recognize the role and liabilities of common carriers in shipping contracts.

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Definitions:

Foreign Consumers

Individuals or entities living or operating outside the producer's home country who purchase goods or services.

International Treaties

Formal agreements between two or more sovereign states or international organizations, governing relationships and setting terms on various issues.

Government Agency

An administrative unit of the government tasked with specific functions and duties.

Spacecraft

A vehicle designed for travel or operation in outer space.