Assume that because of a clerical error, the ending inventory is reported to be 1,070 units rather than the actual number of units (1,170)on hand.5a. If FIFO is used, calculate the amount of the understatement or overstatement in the cost of sales for the first six months of thecurrent year.Overstatementof cost of sales5b. If FIFO is used, calculate the amount of the understatement or overstatement in the current assets at June 30 of the current year.Understatementof current assets Neverstop Corporation sells item A as part of its product line. Information about the beginning inventory, purchases, and sales of itemA are given in the following table for the first six months of the current year. The company uses a perpetual inventory system:DateJanuary 1 (beginning inventory)January 24February 8March 16June 11Ending inventoryGross profit$ 4,668.51$PurchasesNumber of Units5706706701,093.00Unit Cost Number of Units$3.90$4.00$4.00370Required:1. Compute the cost of ending inventory by using the weighted-average costing method. (Do not round intermediate calculations andround the final answer to 2 decimal places.)Sales370Sales Price2. Compute the gross profit for the first six months of the current year by using the FIFO costing method. (Do not round intermediatecalculations and round the final answer to 2 decimal places.)$5.40$5.40

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Assume that because of a clerical error, the ending inventory is reported to be 1,070 units rather than the actual number of units (1,170) on hand. 5a. If FIFO is used, calculate the amount of the understatement or overstatement in the cost of sales for the first six months of the current year. Overstatement of cost of sales

Assume that because of a clerical error, the ending inventory is reported to be 1,070 units rather than the actual number of units (1,170) on hand. 5a. If FIFO is used, calculate the amount of the understatement or overstatement in the cost of sales for the first six months of the current year. Overstatement of cost of sales

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Rose Co. sells one product and uses the last-in, first-out method to determine inventory cost. Information for the month of January follows: Beginning inventory, 1/18,000 Purchases, 1/5 Sales Rose has determined that at January 31, the replacement cost of its inventory was $8 per unit, and the net realizable value was $8.80 per unit. Rose's normal profit margin is $1 per unit. Rose applies the lower-of-cost-or-market rule to total inventory and records any resulting loss. At January 31, what should be the net carrying amount of Rose's inventory? OA) $80,000 OB) $79,000 OC) $78,000 Total Units Unit Cost D) $81,400 12,000 10,000 $8.20 7.90
Assume that because of a clerical error, the ending inventory is reported to be 1,070 units rather than the actual number of units (1,170) on hand. 5a. If FIFO is used, calculate the amount of the understatement or overstatement in the cost of sales for the first six months of the current year. Overstatement of cost of sales 5b. If FIFO is used, calculate the amount of the understatement or overstatement in the current assets at June 30 of the current year. Understatement of current assets
Compute ending inventory and cost of good sold under LIFO, assuming Matthias Company uses the periodic inventory system.
Q: Which misstatement below is more difficult to detect? Explain.(i)The inventory costing $ 150,000 being ordered by customers before the year end was excluded from the ending inventory balance as they are set aside for delivery after year end. The ending balance of inventory as on the statement of financial position was $ 600,000.(ii) Inventory list shows 40 boxes of rice but only 38 boxes were found in the warehouse.(iii) The inventory has a cost of $600,000 and realizable value of $540,000 as the items are outdated. The ending balance of inventory as on the statement of financial position was $ 600,000.
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Akira Company had the following transactions for the month. Sales for the month are $25 per unit. # of Units Cost per Unit Beginning Inventory 150 $10 Purchased Mar. 31 160 $12 Purchased Oct. 15 130 $15 Ending Inventory 50 ? In the table below, calculate the dollar value for the period for each of the following items using the listed cost allocation methods and using periodic inventory updating. PLEASE NOTE: All dollar amounts will be rounded to whole dollars using "$" with commas as needed (i.e. $12,345), except for the Weighted Average cost per unit, which will be rounded to two decimal places and include "$". Weighted average cost per unit = ___?_____ per unit Cost Allocation Method Cost of Goods Available Cost of Goods Sold Ending Inventory Sales Gross Margin First-in, First-out (FIFO) Last-in, First-out (LIFO) Weighted Average (AVG)
am. 241.
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Prepare Natura Company's journal entries to record the following transactions involving its short-term investments in held-to-maturity debt securities, all of which occurred during the current year. a. On June 15, paid $180,000 cash to purchase Remed's 90-day short-term debt securities ($180,000 principal), dated June 15, that pay 7% interest. b. On September 16, received a check from Remed in payment of the principal and 90 days' interest on the debt securities purchased in transaction a. Note: Use 360 days in a year. Do not round your intermediate calculations. View transaction list Journal entry worksheet < 1 2 On June 15, paid $180,000 cash to purchase Remed's 90-day short-term debt securities ($180,000 principal), dated June 15, that pay 7% interest. Note: Enter debits before credits. Transaction a. Record entry General Journal Clear entry Debit Credit View general journal
Solve the problem using the information given in the table and the weighted-average inventory method. Round the final answer to the nearest cent - do no round other calculation. Calculate the cost of goods sold. Answer: ($2,053.55) The answer is here but I need to know HOW to get the answer - the chart is attached.
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