Scenario 1:Rocky Inc hired a new intern from CSU to help with year-end inventory. The intern computed the inventory counts at the end of 2020 and 2021. However, the intern's manager, a UNC grad, noticed that the ending inventory did not include inventory on consignment to a retail customer of $3,000 at the end of year 2020 and $6,000 at the end of year 2021. What was the effect of the error (if any] on 2021's statements (amount and whether it was under- ( too low) or over-stated (too high)? If there is no effect, put OK
Scenario 1:Rocky Inc hired a new intern from CSU to help with year-end inventory. The intern computed the inventory counts at the end of 2020 and 2021. However, the intern's manager, a UNC grad, noticed that the ending inventory did not include inventory on consignment to a retail customer of $3,000 at the end of year 2020 and $6,000 at the end of year 2021. What was the effect of the error (if any] on 2021's statements (amount and whether it was under- ( too low) or over-stated (too high)? If there is no effect, put OK
Chapter10: Inventory
Section: Chapter Questions
Problem 13EA: If a group of inventory items costing $15,000 had been omitted from the year-end inventory count,...
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Question
![Scenario 1:Rocky Inc hired a new intern from CSU to help with year-end inventory. The intern
computed the inventory counts at the end of 2020 and 2021. However, the intern's manager,
a UNC grad, noticed that the ending inventory did not include inventory on consignment to a
retail customer of $3,000 at the end of year 2020 and $6,000 at the end of year 2021. What
was the effect of the error (if any] on 2021's statements (amount and whether it was under- (
too low) or over-stated (too high)? If there is no effect, put OK](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc1c07c46-c8b0-4b5c-8d35-95d2469eead3%2F626bbb95-151b-4bae-a932-045f23a96383%2Fkhc97wo_processed.png&w=3840&q=75)
Transcribed Image Text:Scenario 1:Rocky Inc hired a new intern from CSU to help with year-end inventory. The intern
computed the inventory counts at the end of 2020 and 2021. However, the intern's manager,
a UNC grad, noticed that the ending inventory did not include inventory on consignment to a
retail customer of $3,000 at the end of year 2020 and $6,000 at the end of year 2021. What
was the effect of the error (if any] on 2021's statements (amount and whether it was under- (
too low) or over-stated (too high)? If there is no effect, put OK
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