(a) Concept introduction: The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company. To calculate: If the inventory of 2017 is understated or overstated and the amount of such error.

Question

Want to see the full answer?

Answer 1

Question

Chapter 6, Problem 71BPSB

To determine

(a)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To calculate:

If the inventory of 2017 is understated or overstated and the amount of such error.

To determine

(b)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To rectify:

The income statement for all three years.

To determine

(c)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To calculate:

The impact of error in inventory in 2017 on the cumulative net income.

To determine

(d)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To state:

The reasonsfor unaffected net income of 2019.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Provide correct option general accounting question

On January 1, 2023, Pharoah Ltd. had 702,000 common shares outstanding. During 2023, it had the following transactions that affected the common share account: Feb. 1 Issued 160,000 shares Mar. 1 Issued a 10% stock dividend May 1 Acquired 181,000 common shares and retired them June 1 Issued a 3-for-1 stock split Oct. 1 Issued 78,000 shares ♡ The company's year end is December 31Determine the weighted average number of shares outstanding as at December 31, 2023. (Round answer to O decimal places, eg. 5,275.) Weighted average number of shares outstanding

use the high-low method to calculate Smithson's fixed costs per month.

Answer 2

Question

Chapter 6, Problem 71BPSB

To determine

(a)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To calculate:

If the inventory of 2017 is understated or overstated and the amount of such error.

To determine

(b)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To rectify:

The income statement for all three years.

To determine

(c)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To calculate:

The impact of error in inventory in 2017 on the cumulative net income.

To determine

(d)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To state:

The reasonsfor unaffected net income of 2019.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 6, Problem 71BPSB

To determine

(a)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To calculate:

If the inventory of 2017 is understated or overstated and the amount of such error.

To determine

(b)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To rectify:

The income statement for all three years.

To determine

(c)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To calculate:

The impact of error in inventory in 2017 on the cumulative net income.

To determine

(d)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To state:

The reasonsfor unaffected net income of 2019.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 6, Problem 71BPSB

To determine

(a)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To calculate:

If the inventory of 2017 is understated or overstated and the amount of such error.

To determine

(b)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To rectify:

The income statement for all three years.

To determine

(c)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To calculate:

The impact of error in inventory in 2017 on the cumulative net income.

To determine

(d)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To state:

The reasonsfor unaffected net income of 2019.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 6, Problem 71BPSB

To determine

(a)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To calculate:

If the inventory of 2017 is understated or overstated and the amount of such error.

To determine

(b)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To rectify:

The income statement for all three years.

To determine

(c)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To calculate:

The impact of error in inventory in 2017 on the cumulative net income.

To determine

(d)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To state:

The reasonsfor unaffected net income of 2019.

Answer 6

Chapter 6, Problem 71BPSB

To determine

(a)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To calculate:

If the inventory of 2017 is understated or overstated and the amount of such error.

Answer 7

Chapter 6, Problem 71BPSB

To determine

(a)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To calculate:

If the inventory of 2017 is understated or overstated and the amount of such error.

Answer 8

To determine

(b)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To rectify:

The income statement for all three years.

Answer 9

To determine

(b)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To rectify:

The income statement for all three years.

Answer 10

To determine

(c)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To calculate:

The impact of error in inventory in 2017 on the cumulative net income.

Answer 11

To determine

(c)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To calculate:

The impact of error in inventory in 2017 on the cumulative net income.

Answer 12

To determine

(d)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To state:

The reasonsfor unaffected net income of 2019.

Answer 13

To determine

(d)

Concept introduction:

The errors in the recording of inventories in the books may be due to many reasons like omission of entry or recording it twice which will either understate or overstate the inventories. This will affect the gross profit as well as the net profit of the company.

To state:

The reasonsfor unaffected net income of 2019.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 17

Ch. 6 - Prob. 1DQ Ch. 6 - Describe the types of inventories used by...Ch. 6 - Compare the flow of inventory costs between...Ch. 6 - What are the components of cost of goods available...Ch. 6 - How is cost of goods sold determined?Ch. 6 - How do the perpetual and periodic inventory...Ch. 6 - Why are perpetual inventory systems more expensive...Ch. 6 - Prob. 8DQ Ch. 6 - Prob. 9DQ Ch. 6 - Prob. 10DQ

Solution Summary: The author explains that inventories are overstated due to omission of entry or recording it twice, which affects gross profit and net profit of the company.

Videos

Want to see the full answer?

Chapter 6 Solutions