Fact Pattern 13-1 (Questions 5-6 Apply)

question 15

Multiple Choice

Fact Pattern 13-1 (Questions 5-6 apply)
Moore Properties,Inc.,offers in writing to sell to Lawn Acres Development Corporation a certain half-acre of land for "$112,000." After Lawn Acres signs the offer in acceptance and returns it,Moore discovers that the price should have been stated as "$121,000."
-Refer to Fact Pattern 13-1.The effect of Moore's misstatement of the price will most likely fall on

• A)Moore and Lawn Acres,who must split the difference.
• B)Moore only.
• C)Lawn Acres only.
• D)neither Moore nor Lawn Acres.

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Definitions:

Accumulate Production

This term may not be standard; however, it could refer to the process of compiling or aggregating the total output of goods or services produced over a period.

Work in Process Inventory

Items currently in production but not yet completed; part of a manufacturing company's inventory.

Finished Goods Inventory

The total value of all the finished products that are ready for sale but have not yet been sold by the company.

Work in Process Inventory

Items in production that are not yet completed, representing a stage between raw materials and finished goods in manufacturing.