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gigi246899
08.12.2020 •
Business
Essay Question
A UK convenience store chain has embarked on a company-wide initiative to work
predominantly with local, independent farmers to provide fresh fruit and vegetables. The
company is about to refurbish one of its stores to include a loose fruit and vegetable aisle
to reduce plastic waste and it intends to refurbish all stores over time. A spokesperson
said, 'We buy local where we can, and although we are sometimes tied by seasonality and
weather conditions, buying from local producers can minimise the supply chain, ensure
quality control and traceability, and build a strong working relationship with local
producers who are eager to provide a great service.'
Required:
Advise the management of the convenience store chain on how to price its new fruit and
vegetable offering
(Total 40 marks)
Solved
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Ответ:
Explanation:
The correct value of inventory:
Year end balance $267,670
Add:
Goods purchased on term FOB shipping point $25,600
Goods sold on terms FOB destination $52,170
Less: Goods purchased on terms FOB destination ($43,630)
Correct inventory as on December 31 $301,810