$\text { The following selected transactions for Nova Scotian Tire occurred in October. }$

question 37

Essay

$\text { The following selected transactions for Nova Scotian Tire occurred in October. }$
$\begin{array} { l l l c c c } \text { Date } && \text { Description } & \text { Units } & \text { Unit Cost } & \text { Unit Selling Price } \\\text { Oct } & 1 & \text { Beginning Inventory } & 12 & \$ 164 & \\& 1 & \text { Purchase } & 50 & 170 & \\& 4 & \text { Sale } & 27 & & \$ 270 \\& & \text { Sale } & 23 & & 270 \\& & \text { Purchase } & 33 & 175 & \\& & \text { Sale } & 24 & & 270 \\& & \text { Purchase } & 31 & 190 & 280\\& 30& \text { Sale } & 24 & & 280\end{array}$ 1. Assuming that Nova Scotian Tire uses a perpetual inventory system, calculate cost of goods sold and ending inventory using: a)FIFO b)Moving weighted average.
2. Assuming that Nova Scotian Tire uses a periodic inventory system, calculate cost of goods sold and ending inventory using: a)FIFO b)Weighted Average.
3. Assuming that Nova Scotian Tire uses FIFO under a perpetual inventory system, calculate the gross margin for the month of October.
4. Assuming that Nova Scotian Tire uses FIFO under a perpetual inventory system, prepare a journal to record the October 30th sale on credit.
5. Nova Scotian Tire does a physical inventory count at the end of October and discovers 15 tires are missing from inventory. Prepare a journal entry to adjust inventory, assuming the company uses Weighted Average under a periodic inventory system.

Describe the requirements for an offer to be legally effective.

Explain the doctrine of contractual capacity.

Understand how the law enforces the keeping of promises through contract law.

Identify what constitutes consideration within a contract.

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Definitions:

Operating Expenses

Ongoing costs for running a business that do not include the cost of goods sold but can cover expenses such as rent, utilities, and salaries.

Accounts Payable

Accounts payable is the amount a company owes to its suppliers or creditors for goods or services received but not yet paid for.

Inventory

Items and substances that a company stocks with the ultimate purpose of selling or further processing.