At December 31, 2012, StevensonCompany overstated endinginventory by $36,000. How doesthis error affect cost of goodssold and net income for 2012?a. Overstates cost of goods soldand understates net incomeb. Understates cost of goods soldand overstates net incomec. Leaves both cost of goods soldand net income correct becausethe errors cancel each otherd. Overstates both cost of goodssold and net income

Definition of Ending Inventory and Cost of Goods Sold:Ending inventory is one of the components of…

Answered: At December 31, 2012, Stevenson Company…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 14PA: Assuming a companys year-end inventory were overstated by $5,000, indicate the effect...

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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?
Instruction: Please use moving average in answering the questions (disregard FIFO)
The cost of goods sold and total operating expenses of a merchandising company are both understated by P5,300 and P 3,500 respectively. As a result of these errors, the company's gross margin is overstated (understated) by how much?
Merchandise inventory at the end of the year was understated. Which of the following statements correctly states the effect of the error? Oa. Net income is understated. Ob. Net income is overstated. Dc. Merchandise inventory reported on the balance sheet is overstated. d. Cost of merchandise sold is understated.
Several errors are listed below. Indicate the effect each error would have on 2020 net income by selecting a plus sign (+), minus sign (-) or NI (no impact). Part (a) has been completed as an example. Effect on 2020Net Income a. Failed to record a 2020 expense. + b. Ending 2019 inventory is understated. c. Ending 2020 accrued expense is overstated. d. Ending 2020 inventory is overstated. e. Ending 2019 accrued revenue is understated. f. Ending 2020 prepaid expense is overstated. g. Ending 2019 unearned revenue is overstated. h. Ending 2020 accrued revenue was overstated. i. Ending 2019 prepaid expense was overstated. j. Ending 2019 accrued expense is overstated. k. Ending 2020 unearned revenue is understated.
Please provide a problem solution and answers to A, B, and C.
which of the three methods of costing-FIFO, LIFO, or average cost-will yield (a) cause an overstatement or an understatement of the gross profit for the year? (b) the highest inventory cost, (b) the lowest inventory cost, (c) the highest gross profit, 2. The inventory at the end of the year was understated by $12,750. (a) Did the error Which items on the balance sheet at the end of the year were overstated or understated Part One: Explanation and (d) the lowest gross profit? Show using example? as a result of the error? Show it numerically? 3. If ending inventory is misstated, it will not have an effect in the owners' equity of the following period. Why? 4. In periods of declining prices, which costing method are not preferable income tax purposes? Why? 5. Under what situation is the production method of depreciation appropriate? State and describe the drawback of the production method of depreciation? 6. Write the required data for preparing employee payroll?
Please refer to the picture below for the information. Please show the complete solution and kinldy include label. Thank you so much. Question 1: How much is the amount of "Cost of Goods Sold" to be reported in the 2015 Statement of comprehensive income assuming the company’s policy is to charge loss on inventory write-down to COST OF GOODS SOLD and charge loss on inventory write-down to OTHER EXPENSE, respectively. Question 2: How much is the amount of "Cost of Goods Sold" to be reported in the 2016 Statement of comprehensive income?
AZ Pool Supplies's merchandise inventory data for the year ended December 31, 2017, follow: E (Click the icon to view the inventory data.) Requirements Assume that the ending merchandise inventory was accidentally overstated by $1,800. What are the correct amounts for cost of goods sold and gross profit? How would the inventory error affect AZ Pool Supplies's cost of goods sold and gross profit for the year ended December 31, 2018, if the error is not corrected in 2017? 1. 2. Requirement 1. Assume that the ending merchandise inventory was accidentally overstated by $1,800. What are the correct amounts for cost of goods sold and gross profit? Cost of goods sold in 2017 would be $34500 Data Table Sales Revenue 71,000 Cost of Goods Sold: Beginning Merchandise Inventory %24 3,600 Net Cost of Purchases 25,100 Cost of Goods Available for Sale 28,700 Less: Ending Merchandise Inventory 5,100 Enter your answer in the answer box and then click Check Answer. Cost of Goods Sold 23.600 47,400 Gross…
A) Assume that Chen uses the first-in, first-out method. Compute the cost of goods sold for 2015 and the ending inventory balance at December 31, 2015, for product A. B) Assume that Chen uses the last-in, first-out method. Compute the cost of goods sold for 2015 and the ending inventory balance at December 31, 2015, for product A. C) Assume that Chen uses the weighted-average cost method. Compute the cost of goods sold for 2015 and the ending inventory balance at December 31, 2015, for product A. Do not round until your final answers. Round your answers to the nearest dollar. Then, Assuming that Chen’s products are perishable items, which of the three inventory costing methods would you choose to: Assume this is during a period of rising costs. Reflect the likely goods flow through the business? Minimize income taxes for the period? Report the largest amount of net income for the period?
If beginning inventory is understated by $9800, the effect of this error in the current period is Cost of Goods Sold Net Income overstated understated understated overstated understated understated overstated overstated
If beginning inventory is understated by $11800, the effect of this error in the current period is Cost of Goods Sold Net Income Net Income overstated understated understated overstated understated understated overstated overstated

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