QUESTION 1In its first year of business, Miss Take, the bookkeeper, erroneously recorded $10,000 of product costs asperiod costs. Sixty percent of the inventory has been sold. Which of the following are correct? (Selectall that apply.)O Inventory is overstated by $4,000Inventory is overstated by $6,000Inventory is understated by $4,000Inventory is understated by $6,000O Cost of Goods Sold is overstated by $4,000U Cost of Goods Sold is overstated by $6,000Cost of Goods Sold is understated by $6,000O Cost of Goods Sold is understated by $4,000O O

Period costs are not manufacturing costs and are fully expensed in the period which they are…

In its first year of business, Miss Take, the bookkeeper, erroneously recorded $10,000 of product costs as period costs. Sixty percent of the inventory has been sold. Which of the following are correct? (Select all that apply.) O Inventory is overstated by $4,000 O Inventory is overstated by $6,000 Inventory is understated by $4,000 O Inventory is understated by $6,000 Cost of Goods Sold is overstated by $4,000 O Cost of Goods Sold is overstated by $6,000 O Cost of Goods Sold is understated by $6,000 O Cost of Goods Sold is understated by $4,000 O O O O000O

In its first year of business, Miss Take, the bookkeeper, erroneously recorded $10,000 of product costs as period costs. Sixty percent of the inventory has been sold. Which of the following are correct? (Select all that apply.) O Inventory is overstated by $4,000 O Inventory is overstated by $6,000 Inventory is understated by $4,000 O Inventory is understated by $6,000 Cost of Goods Sold is overstated by $4,000 O Cost of Goods Sold is overstated by $6,000 O Cost of Goods Sold is understated by $6,000 O Cost of Goods Sold is understated by $4,000 O O O O000O

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.24MCE

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ENDING INVENTORY COSTS Danny Steele owns a small specialty store, named Steeles Storeroom, whose year-end is June 30. Determine the total amount that should be included in Steeles Storerooms year-end inventory. A physical inventory taken on June 30 reveals the following: Cost of merchandise on the showroom floor and in the warehouse 42,600 Goods held on consignment (consignor is Quality Manufacturer) 7,600 Goods that Steeles Storeroom, as the consignor, has for sale at the location of Midtown Galleria 8,300 Sales invoices indicate that merchandise was shipped on June 28, terms FOB shipping point, delivered at buyers receiving dock on July 6 4,350 Sales invoices indicate that merchandise was shipped on June 26, terms FOB destination, delivered at buyers receiving dock on July 1 2,800
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Monster Beverage and Brown-Forman: Inventory turnover 7 and number of days' sales in inventory Monster Beverage Corporation develops, markets, and sells energy and other alternative beverage brands. Brown-Forman Corporation manufactures and sells a wide variety of spirit and wine beverages, such as Jack Daniels. The cost of goods sold and inventory were obtained from a recent annual report for both companies as follows (in millions): Monster Beverage Brown-Forman Cost of goods sold 1,125 928 Inventories: Beginning of year 222 882 End ofyear 175 827 A. Determine the inventory turnover for both companies. (Round all calculations to one decimal place.) B. Determine the number of days sales in inventory for both companies. (Use 365 days and round all calculations to one decimal place.) C. Interpret the difference in inventory efficiency based on the companies respective product types.
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