Exercise 4-16 (Algo) Impacts of inventory error on key accounts LO P3 A retailer completed a physical count of ending merchandise inventory. When counting inventory, employees did not include $4,700 of incoming goods shipped by a supplier on December 31 under FOB shipping point. These goods had been recorded in Merchandise Inventory, but they were not included in the physical count because they were in transit. This means shrinkage was incorrectly overstated by $4,700. Compute the amount of overstatement or understatement for each of the following amounts for this period. a. Ending inventory b. Total assets c. Net income d. Total equity

Q: Utility expense

A: Energy, water, and trash disposal are all utilities that are used in the home or business and incur…

Q: What is physical asset market?

A: Definition: The Market where tangible assets can be purchases, sold and liquidity in case of default…

Q: Define Raw materials.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Working Capital

A: Working capital = Current Assets - Current Liabilities  We know that current assets and current…

Q: Define Depletion.

A:

Q: Discuss the importance of asset allocation

A: The Asset allocation is conserved allocation of total fund of investment in different kind of assets…

Q: Define Current assets

A: Introduction: Assets are the properties acquired and managed by business as a result of past events…

Q: Examples of transaction costs

A: Transaction costs are the costs which occur during buying or selling of services and goods. They are…

Q: Define Pledging.

A: When we talk about pledging in terms of accounting, it is to be noted that the word pledging is…

Q: Differentiate between physical units and equivalent units

A:

Q: Define Intangible Assets.

A: Definition:   Assets: These are the resources owned and controlled by business and used to produce…

Q: what are relevent cost of direct material

A: The management of the manufacturing firm has to take certain decisions regarding the…

Q: Define cost of equipment.

A: Definition:   Assets: These are the resources owned and controlled by business and used to produce…

Q: What is underapplied overhead? Overapplied overhead?

A: The under applied overhead is explained as below,

Q: Define the term Raw-materials- inventory?

A: Inventory is the materials such as raw materials, finished products, in-process goods that are…

Q: Describe the purpose of raw material subsidiary ledger.

A: Raw material subsidiary ledger: This ledger refers to the individual account, which records the all…

Q: Describe the term cost of the direct materials.

A: Cost:  Cost refers to the expenses incurred by the business to earn revenue from sales, in other…

Q: What is the carryover amount?

A: Introduction Capital losses may be defined as the decrease in the value of capital assets of the…

Q: The product cost  period cost  opertunity cost

A: Solution:- 1)Calculation of product cost as follows under:- Product cost means costs incurred to…

Q: Describe the effects of using direct and indirect material.

A: Direct materials are required directly in the production process like wood required to make…

Q: assets equation

A: Assets Equation is: Assets = Liabilities + Capital

Q: cost of materials issuances under the fifo method

A: Meaning of FIFO method FIFO method is called as First in First Out method. Under FIFO method the…

Q: What is the cost per equivalent unit for materials?

A: