Designer Furniture Began June with Merchandise Inventory of 45 Sofas

question 2

Essay

Designer Furniture began June with merchandise inventory of 45 sofas that cost a total of $31,500.During the month,Designer Furniture purchased and sold merchandise on account as follows:

Prepare a perpetual inventory record,using the LIFO inventory costing method,and determine the company's cost of goods sold,ending merchandise inventory,and gross profit.
| Purchases | Cost of Goods Sold | Inventory on Hand |

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Definitions:

Apparent Authority

A situation where a third party reasonably believes an individual has the authority to act on behalf of another (such as an employer), even if that person does not have actual authority.

Ratified

An agreement or decision that has been formally approved and confirmed by the required parties.

Actual Authority

The express and implied powers given by a principal to an agent to enter into contracts or take action on the principal's behalf.

Sales Force

The division of a business responsible for selling its products or services, made up of all its salesperson.