Harlan Enterprises manufactures smartphones. Currently, Harlan has $14,000 in raw materials and $25,000 in finished goods in its warehouse. It also has $18,600 in work in process goods on its assembly line. Harlan erroneously includes the work in process goods as part of finished goods inventory, listing work in process inventory as $0. What effect will this have on Harlan's total inventory? O It will cause the total inventory to be $18,600 higher than expected. O It will have no impact on the total inventory. O It will cause the total inventory to be $9,300 higher than expected. O It will cause the total inventory to be $18,600 lower than expected.
Harlan Enterprises manufactures smartphones. Currently, Harlan has $14,000 in raw materials and $25,000 in finished goods in its warehouse. It also has $18,600 in work in process goods on its assembly line. Harlan erroneously includes the work in process goods as part of finished goods inventory, listing work in process inventory as $0. What effect will this have on Harlan's total inventory? O It will cause the total inventory to be $18,600 higher than expected. O It will have no impact on the total inventory. O It will cause the total inventory to be $9,300 higher than expected. O It will cause the total inventory to be $18,600 lower than expected.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Harlan Enterprises manufactures smartphones. Currently, Harlan has $14,000 in raw materials and $25,000 in finished goods in its warehouse. It also has $18,600 in work in process goods on its assembly line. Harlan erroneously includes the work in process goods as part of finished goods inventory, listing work in process inventory as $0. What effect will this have on Harlan's total inventory?
O It will cause the total inventory to be $18,600 higher than expected.
O It will have no impact on the total inventory.
O It will cause the total inventory to be $9,300 higher than expected.
O It will cause the total inventory to be $18,600 lower than expected.
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