Hot Bread Bakery reported net sales revenue of $44,000 and cost of goods sold of $33,000. Compute Hot Bread's correct gross profit if the company made either of the following independent accounting errors. a. Ending merchandise inventory is overstated by $8,000. b. Ending merchandise inventory is understated by $8,000. .... Cost of Goods Sold and Gross Profit Corrected for the Error Ending Merchandise Inventory: As Reported- (a) Overstated by (b) Understated by Incorrect $8,000 $8,000 Net sales revenue 44,000 $ 44,000 $ 44,000 Cost of goods sold 33,000 Gross profit

Hot Bread Bakery reported net sales revenue of $44,000 and cost of goods sold of $33,000. Compute Hot Bread's correct gross profit if the company made either of the following independent accounting errors. a. Ending merchandise inventory is overstated by $8,000. b. Ending merchandise inventory is understated by $8,000. .... Cost of Goods Sold and Gross Profit Corrected for the Error Ending Merchandise Inventory: As Reported- (a) Overstated by (b) Understated by Incorrect $8,000 $8,000 Net sales revenue 44,000 $ 44,000 $ 44,000 Cost of goods sold 33,000 Gross profit

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Description: Hot Bread Bakery reported net sales revenue of $44,000 and cost of goods sold of $33,000.Compute Hot Bread's correct gross profit if the company made either of the following independent accounting errors.a. Ending merchandise inventory is overstated

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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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
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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.
Subject: acounting
As shown below: an accountant has debited the Inventory account for $65,000 and credited the Accounts Payable account for $46,000. Debit Inventory $65,000 Credit Accounts Payable $46,000 Credit ????? $19,000 The entry is not balanced. Which account below could be used to fill in the ????? above to form a realistic transaction? Select one: O a. There is no account that could be used to create a realistic transaction. O b. Sales Revenue. O c. Inventory. O d. Cash at Bank.
Lucia Company reported cost of goods sold for Year 1 and Year 2 as follows: Year 1 Year 2 Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold $127,000 $131,400 251,400 282,000 378,400 413,400 131,400 136,400 $247,000 $277,000 Lucia Company made two errors: 1) ending inventory at the end of Year 1 was understated by $16,400 and 2) ending inventory at the end of Year 2 was overstated by $7,400. Given this information, the correct cost of goods sold figure for Year 2 would be: Multiple Choice $284,400 $300,800 $269,600 $293,400 $256 000
27. Subject :- Accounting
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