Fact Pattern 13-3 Haruko, Who Owns and Operates Garden Orchard, Agrees to Sell

question 57

Multiple Choice

Fact Pattern 13-3
Haruko, who owns and operates Garden Orchard, agrees to sell Fresh Produce Cooperative ten bush¬els of apples.
-Refer to Fact Pattern 13-3.When the market price for apples exceeds the price in the contract with Fresh Produce,Haruko decides not to deliver the apples. This

• A) breaches the contract.
• B) discharges the contract.
• C) has no effect on the contract.
• D) suspends the contract.

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Definitions:

Cost of Goods Sold

Direct expenditures connected with fabricating the products a business sells, encompassing labor and material expenses.

Ending Inventory

The value of goods available for sale at the end of an accounting period, determined by a physical count or estimation.

Periodic LIFO

An inventory valuation method that assumes the last items purchased are the first sold, calculated at the end of an accounting period.

Ending Inventory

The ultimate amount of products ready for purchase at the close of a financial period.