Lucia Company reported cost of goods sold for Year 1 and Year 2 as follows: Year 1 Year 2 Beginning inventory $127,000 $131,400 Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold 282,000 251,400 378,400 413,400 131,400 136,400 $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

Lucia Company reported cost of goods sold for Year 1 and Year 2 as follows: Year 1 Year 2 Beginning inventory $127,000 $131,400 Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold 282,000 251,400 378,400 413,400 131,400 136,400 $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

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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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found in the warehouse.(iii) The inventory has a cost of $600,000 and realizable value of $540,000 as the items are outdated.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.
In Year 1 and Year 2, Basilisk Manufacturing reported its gross margin as follows: Basilisk Manufacturing Partial Income Statement Year 1 Year 2 Sales $6,720,000 $7,340,000 Cost of goods sold 3,001,600 3,538,400 Gross margin 3,718,400 3,801,600 In Year 3, Basilisk Manufacturing changed its inventory valuation method. If the new inventory method had been used in Year 1 and Year 2, cost of goods sold would have been less by $100,000 in Year 1 and by $140,000 in Year 2. In the Year 3 financial statements, what should be reported for the Year 2 gross margin? Select one: O O O O a. $4,161,600 b. $3,801,600 (There would be no difference in the amount reported since the inventory valuation method wasn't changed until Year 3.) c. $3,661,600 d. $3,941,600 e. $3,561,600
am.111.
I have answer for a and b Solve c
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Dhapa
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