Question

On February 28, Pitt packaged goods and had them ready for shipping to a customer FOB destination. The invoice price was $350 plus $25 for freight; the cost of the items was $280. The receiving report indicates that the goods were received by the customer on March 2

Answer 1

Based on the information given, we can infer that the terms of the sale were FOB (Free on Board) destination. This means that the seller (Pitt) is responsible for the goods until they reach their destination (the customer's location).Since the customer received the goods on March 2, this means that the goods were in transit for at least a day. This could have been due to shipping delays, distance between the seller and the customer, or other factors.The invoice price of the goods was $350, which included $25 for freight. This means that the actual cost of the goods themselves was $350 - $25 = $325.The cost of the items to Pitt was $280. This means that the profit on the sale was $325 - $280 = $45.It's important to note that there may have been other costs associated with the sale, such as packaging materials or labor costs, that are not mentioned in the given information.