ending inventory was overstated by $7,700.
Q: If beginning inventory is 40 units at $4 per unit, purchases are 20 units at $8 per unit and 10…
A: Inventory valuation is based on the flow of inventory and the FIFO method says that the firm should…
Q: How many units must be in ending inventory if beginning inventory was 15,000 units, 58,000 units…
A: Beginning inventory 15000 Add: Units started 58000 Units to account for 73000 Less: Units…
Q: . What is the inventory turnover? (Do not round intermediate calculations and round your answer to 2…
A: Inventory Turnover: Inventory turnover refers to the number of times a firm is able to replace its…
Q: What is COGS and cost of ending inventory in the company using average costing method where 4.000…
A: No. of units sold = No. of units purchased - no. of units in ending inventory = 4000 - 400 = 3600…
Q: If ending inventory is understated by $25,000, what effect will this have on cost of goods sold and…
A: Formula: Cost of goods sold = Beginning inventory + Purchases - Ending Inventory.
Q: Cost of goods sold is $7,400. Beginning inventory is $3,500 and ending inventory is $4,000. If there…
A: Cost of goods sold = Beginning inventory + Net Purchases -Ending inventory Net Purchases = Cost of…
Q: inventory
A: Introduction: Ending inventory for a company generally indicates the balance goods which are…
Q: Assuming a company’s year-end inventory were overstated by $5,000, indicate the effect…
A: A) Cost of goods sold : Suppose inventory at the start = $10,000, Purchases = $ 50,000 and…
Q: During the year ended December 31, 2020, The Zuckerberg Company purchased inventory for $500 and…
A: Cost of Goods Sold :— Cost of goods sold is the total amount your business paid as a cost directly…
Q: Bren Co.’s beginning inventory on January 1 was understated by $26,000, and its ending inventory on…
A:
Q: Cost of goods sold for Abe Distributors was $550,330 for the year. If the beginning inventory at…
A: Ratio analysis is one of the important technique of management accounting. Under this, various…
Q: P3,000,000, and the allowance for inventory writedown before At year-end, Julie Company reported…
A: Computation of the amount of loss on inventory writedown should be included in cost of goods sold is…
Q: The total value of ending inventory at the end of the quarter is: a. 1,140,000 b. 750,000 c.…
A:
Q: what is a correcting entry for $150,000 of overstated inventory
A: The overstatement of the inventory would mean that the inventory (assumed ending inventory) is…
Q: During the year, a company sold 8,500 units of inventory for $30 per unit. In addition, the company…
A:
Q: The days' sale in inventory is 73. The cost of goods sold is 720,000. The net sales are 1,020,000,…
A:
Q: Which of the following is correct when, in the same year, beginning inventory is overstated by…
A: The net income is calculated as difference between sales and total costs. Gross profit = Sales -…
Q: Charlie Day Co.’s beginning inventory at January 1 was understated by $26,000 and its ending…
A: The cost of goods sold is the cost of the product sold during the period.
Q: What is the inventory turnover if COGS is $10,000, beginning inventory was 200, and ending inventory…
A: Inventory Turnover:This is a financial metric used to quantify the number of times inventory is used…
Q: Oriole Company had beginning inventory on May 1 of $10,560. During the month, the company made…
A: Cost of goods available for sale = Beginning inventory + Purchases - purchase return Cost of goods…
Q: Sarasota Inc. had beginning inventory of $20,600 at cost and $30,600 at retail. Net purchases were…
A: Retail method: One of the accounting method where the value of the merchandise or goods sold is…
Q: Sun Co. uses a periodic inventory system. Beginning inventory on Jan. 1 was overstated by $32,000,…
A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…
Q: Seifert Company uses the periodic inventory system. At the end of the accounting period, on December…
A: Journal entries refer to transaction recording into the day book of the company or accounts of…
Q: How much were inventory purchases when cost of goods sold was $250,000, beginning inventory was…
A: Cost of goods sold= opening inventory + Purchases - Closing inventory
Q: Ebbers Corporation overstated its ending inventory balance by $15,000 in the current year. What…
A:
Q: Based on the following data, estimate the cost of the ending inventory: Sales $9,250,000 Estimated…
A: Cost of goods sold = Sales - Gross profit = $9,250,000 - $9,250,000*36% = $5,920,000
Q: The King Corporation has ending inventory of $386,735, and cost of goods sold for the year just…
A: Calculate the inventory turnover as follows:
Q: A company uses a periodic inventory system. The beginning inventory was $20,000, purchases amounted…
A: The cost of goods sold is the total amount your company paid as a cost directly related to the sale…
Q: How many units must be in ending inventory if beginning inventory was 17,000 units, 58,000 units…
A: Ending inventory units: Beginning units + Units started during the period…
Q: Nizwa Company had the cost of goods sold of $ 160,000 and inventory balance was $23,000. What is the…
A: Inventory turnover ratio = cost of goods sold / average inventory
Q: How many units must be in ending inventory if beginning inventory was 12,000 units, 54,000 units…
A: Beginning Inventory + Units Introduced = Units Transferred out + Ending Inventory 12,000 + 54,000…
Q: A company began its fiscal year with inventory of $189,000. Purchases and cost of goods sold for the…
A: Given that: Beginning Inventory = $189000 Purchases = $949000 Cost of goods sold = $983200
Q: If Soda Popinski's Company's ending inventory was actually $86,000 but was adjusted at year end to a…
A: Cost of good sold = Opening inventory + Purchases + Direct expenses - Closing inventory. So,…
Q: So what was the cost of products sold and ending inventory under (4) LIFO, (5) FIFO, and (6) Average…
A: LIFO Method Date Purchase Cost of goods sold Balance Inventory Quantity Cost per Unit (In…
Q: Consider the following information: Units Cost per unit Total costs Goods in inventory at…
A: Under Weighted average cost method, value of ending inventory and cost of goods sold is calculated…
Q: If net sales are $300,000, cost of goods available for sale is $280,000, and gross profit…
A: Definition: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a…
Q: The company has beginning inventory for the year of $24,000, during the year cost of goods sold was…
A: The cost of goods sold refers to costs that are specifically allocated to the goods sold. Cost of…
Q: Cinco Company determined the following information for an inventory at year-end: P2,000,000…
A: Inventory is reported at lower of historical cost and net realizable value. Net realizable value is…
Q: The company has beginning inventory for the year of $50,000, during the year cost of goods sold was…
A: Solution.. Cost of goods sold = $725,000 Beginning inventory = $50,000 Ending inventory =…
Q: utler Company reported ending inventory at December 31, 2010 of $1,200,000 under LIFO. It also…
A: Cost of goods sold for 2010 as per FIFO = Cost of goods sold for 2010 as per LIFO - (LIFO reserve at…
Q: How many units must be in ending inventory if beginning inventory was 16,924 units, 31,777 units…
A: Ending Inventory = Beginning Inventory + Units Started - Units Completed
Q: The cost of goods sold for Home Depot last year amounted to $3,536,800 and the average inventory at…
A: Inventory turnover: It is the rate at which the company sells its inventory. Calculating inventory…
Q: A company reports the following:Cost of goods sold $435,000Average…
A: a. Compute inventory turnover ratio.
Q: A company reported the net income of $58,000 for the year ending 2018. However, it was discovered…
A: Net income:Net income can be defined as the income reported at the bottom of the income statement of…
Q: a. What is the inventory turnover?
A: Inventory Turnover is otherwise called as stock turnover ratio. It is a measure which indicates…
Q: The company has beginning inventory for the year of $50,000, during the year cost of goods sold was…
A: Cost of goods sold = Beginning inventory + Purchases - Ending inventory Purchases = Cost of goods…
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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?At the end of 2019, Manny Company recorded its ending inventory at 350,000 based on a physical count. During 2020, the company discovered that the correct inventory value at the end of 2019 should have been 400,000 because it made a counting error. Upon discovery of this error in 2020, what correcting journal entry will Manny make? Ignore income taxes.Fava Company began operations in 2018 and used the LIFO inventory method for both financial reporting and income taxes. At the beginning of 2019, the anticipated cost trends in the industry had changed, so that it adopted the FIFO method for both financial reporting and income taxes. Fava reported revenues of 300,000 and 270,000 in 2019 and 2018, respectively. Fava reported expenses (excluding income tax expense) of 125,000 and 120,000 in 2019 and 2018, which included cost of goods sold of 55,000 and 45,000, respectively. An analysis indicates that the FIFO cost of goods sold would have been lower by 8,000 in 2018. The tax rate is 21%. Fava has a simple capital structure with 15,000 shares of common stock outstanding during 2018 and 2019. It paid no dividends in either year. Required: 1. Prepare the journal entry to reflect the change. 2. At the end of 2019, prepare the comparative income statements for 2019 and 2018. Notes to the financial statements are not necessary. 3. At the end of 2019, prepare the comparative retained earnings statements for 2019 and 2018.
- Schmidt Company began operations on January 1, 2018, and used the LIFO inventory method for both financial reporting and income taxes. However, at the beginning of 2020, Schmidt decided to switch to the average cost inventory method for financial and income tax reporting. It had previously reported the following financial statement information for 2019: An analysis of the accounting records discloses the following cost of goods sold under the LIFO and average cost inventory methods: There are no indirect effects of the change in inventory method. Revenues for 2020 total 130,000; operating expenses for 2020 total 30,000. Schmidt is subject to a 21% income tax rate in all years; it pays all income taxes payable in the next quarter. Assume that any deferred tax liability was paid in the subsequent year. Schmidt had 10,000 shares of common stock outstanding during all years; it paid dividends of 1 per share in 2020. At the end of 2020, Schmidt had cash of 15,600, inventory of 34,000, other assets of 76,000, income taxes payable of 4,200, and accounts payable of 3,000. It desires to show financial statements for the current year and previous year in its 2020 annual report. Required: 1. Prepare the journal entry to reflect the change in method at the beginning of 2020. Show supporting calculations. 2. Prepare the 2020 financial statements. Notes to the financial statements are not necessary. Show supporting calculations.Borys Companys periodic inventory at December 31, 2019, is understated by 10,000, but purchases are correct. Johnson correctly values its 2020 ending inventory. What is the effect of this error on Boryss 2019 and 2020 financial statements?Abrat Company failed to accrue an allowance for doubtful accounts of 13,500 in 2019. Upon discovery of this error in 2020 prior to making its estimate of doubtful accounts, what correcting journal entry should Abrat make? Ignore income taxes.
- Elegant Linens uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Elegant Linens considers changing the past-due categories as follows. A. Complete each table by filling in the blanks. B. Determine the difference between total uncollectible. C. Complete the following 2019 comparative income statements for 2019, showing net income changes as a result of the changes to the balance sheet aging method categories. D. Describe the categories change effect on net income and accounts receivable.Koopman Company began operations on January 1, 2018, and uses they FIFO inventory method for financial reporting and the average cost inventory method for income taxes. At the beginning of 2020, Koopman decided to switch to the average cost inventory method for financial reporting. It had previously reported the following financial statement information for 2019: An analysis of the accounting records discloses the following cost of goods sold under the FIFO and average cost inventory methods: There are no indirect effects of the change in inventory method. Revenues for 2020 total 130,000; operating expenses for 2020 total 30,000. Koopman is subject to a 21% income tax rate in all years; it pays the income taxes payable of a current year in the first quarter of the next year. Koopman had 10,000 shares of common stock outstanding during all years; it paid dividends of 1 per share in 2020. At the end of 2020, Koopman had cash of 10,000, inventory of 24,000, other assets of 70,800, accounts payable of 4,500, and income taxes payable of 6,000. It desires to show financial statements for the current year and previous year in its 2020 annual report. Required: 1. Prepare the journal entry to reflect the change in methods at the beginning of 2020. Show supporting calculations. 2. Prepare the 2020 financial statements. Notes to the financial statements are not necessary. Show supporting calculations.Noren Company uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Noren Company considers changing the past-due categories as follows. A. Complete each table by filling in the blanks. B. Determine the difference between totals uncollectible. C. Complete the following 2019 comparative income statements for 2019, showing net income changes as a result of the changes to the balance sheet aging method categories. D. Describe the categories change effect on net income and accounts receivable.
- Vader Corporation made two errors in counting inventory: Ending inventory for 2019 was overstated by $15,000, and ending inventory for 2020 was understated by $12,000. If neither error was corrected, what will be the error (before taxes) in 2020 net income? a.Overstated $27,000. b.Understated $27,000. c.Overstated $3,000. d.Understated $3,000.Green Trifle Bakery discovered some errors for 2020 and 2021. What would be the impact on net income for each year if the errors were left undetected? Error Ending inventory in 2020 was overstated, but correctly counted in 2021. Depreciation expense was incorrectly calculated in 2020, resulting in $1,000 of Rent expense for 2020 was not accrued, and incorrectly [Select] recorded as an expense when paid in 2021. additional expense recorded. It was correctly calculated in 2021. Subscription revenue for 2021 was incorrectly recorded as revenue when it was received in 2020. 2020 Sales on accounts were not recorded when made in 2020, and recorded in 2021 when cash was received. [Select] [Select] [Select] [Select] V <The before-tax income for Blossom Co. for 2020 was $98,000 and $80,800 for 2021. However, the accountant noted that the following errors had been made: 1. Sales for 2020 included amounts of $40,700 which had been received in cash during 2020, but for which the related products were delivered in 2021. Title did not pass to the purchaser until 2021. 2. The inventory on December 31, 2020, was understated by $8,100. 3. The bookkeeper in recording interest expense for both 2020 and 2021 on bonds payable made the following entry on an annual basis. Interest Expense 16,800 Cash 16,800 The bonds have a face value of $280,000 and pay a stated interest rate of 6%. They were issued at a discount of $16,000 on January 1, 2020, to yield an effective-interest rate of 7%. (Assume that the effective-yield method should be used.) 4. Ordinary repairs to equipment had been erroneously charged to the Equipment account during 2020 and…
