At December 31, 2016, Stevenson Company overstated ending inventory by $36,000. How does this error affect cost of goods sold and net income for 2016?O A. Overstates cost of goods sold and understates net incomeO B. Understates cost of goods sold and overstates net incomeO C. Leaves both cost of goods sold and net income correct because the errors cancel each otherO D. Overstates both cost of goods sold and net income

Cost of goods sold:- Cost of goods sold includes the direct costs of producing or purchasing the…

at December 31, 2016, Stevenson Company overstated ending inventory by $36,000. How does this error affect cost of goods sold and net income for 2016? D A. Overstates cost of goods sold and understates net income D B. Understates cost of goods sold and overstates net income O C. Leaves both cost of goods sold and net income correct because the errors cancel each other O D. Overstates both cost of goods sold and net income

at December 31, 2016, Stevenson Company overstated ending inventory by $36,000. How does this error affect cost of goods sold and net income for 2016? D A. Overstates cost of goods sold and understates net income D B. Understates cost of goods sold and overstates net income O C. Leaves both cost of goods sold and net income correct because the errors cancel each other O D. Overstates both cost of goods sold and net income

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 13PB: Company Edgar reported the following cost of goods sold but later realized that an error had been...

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Company Edgar reported the following cost of goods sold but later realized that an error had been made in ending inventory for year 2021. The correct inventory amount for 2021 was 12,000. Once the error is corrected, (a) how much is the restated cost of goods sold for 2021? and (b) how much is the restated cost of goods sold for 2022?
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If a group of inventory items costing $3,200 had been double counted during the year-end inventory count, what impact would the error have on the following inventory calculations? Indicate the effect (and amount) as either (a) none, (b) understated $______, or (c) overstated $______. Table 10.2
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