Homework Answers
| 2021 | ||
| Cost of goods sold | Understated | 7000 |
| Gross Profit | Overstated | 7000 |
| 2022 | ||
| Cost of goods sold | Overstated | 7000 |
| Gross Profit | Understated | 7000 |
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Help Save G. Ex A company overstated its ending inventory balance by $7000 in 2021 What...
A company understated its ending Inventory balance by $9,000 in 2021. What impact will this error...
A company understated its ending Inventory balance by $9,000 in 2021. What impact will this error have on cost of goods sold and gross profit in 2021 and 2022? 2021 Cost of goods sold Gross profit 2022 Cost of goods sold Gross profit
A company understated its ending inventory balance by $8,000 in 2021. What impact will this error have on cost of good...
A company understated its ending inventory balance by $8,000 in 2021. What impact will this error have on cost of goods sold and gross profit in 2021 and 2022? Cost of goods sold Gross profit Understated Understated 1 $ $ 2021 8,000 8,000 Cost of goods sold Gross profit Not affected Not affected 2022 $ S 0 0
1a. During 2021, a company sells 270 units of inventory for $94 each. The company has...
1a. During 2021, a company sells 270 units of inventory for $94 each. The company has the following inventory purchase transactions for 2021: Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 65 $ 67 $ 4,355 May 5 Purchase 164 68 11,152 Nov. 3 Purchase 186 70 13,020 415 $ 28,527 Calculate ending inventory and cost of goods sold for 2021 assuming the company uses FIFO. 1b. A company overstated its ending inventory balance by...
TULUI 30,000 30,000 Glacier made two errors: (1) 2020 ending inventory was overstated by $5,500, and...
TULUI 30,000 30,000 Glacier made two errors: (1) 2020 ending inventory was overstated by $5,500, and (2) 2021 ending inventory was understated by $4,000. Instructions a. Calculate the correct cost of goods sold and ending inventory for each year. b. Describe the impact of the errors on profit for 2020 and 2021 and on owner's equity at the end of 2020 and 2021. c. Explain why it is important that Glacier Fishing Gear correct these errors as soon as they...
Given the following Ending Inventory errors for the Portland Company: Ending Inventory Error Year Overstated $30...
Given the following Ending Inventory errors for the Portland Company: Ending Inventory Error Year Overstated $30 2020 Understated $40 2021 Indicate the error in the following items: Select one: a. 2022 Net Income 12/31/21 Retained Earnings Understated $10 No error b. 2022 Net Income 12/31/21 Retained Earnings Overstated $10 No error C. 2022 Net Income 12/31/21 Retained Earnings Understated $40 Understated $40 d. 2022 Net Income 12/31/21 Retained Earnings Overstated $40 Understated $40 e. 2022 Net Income 12/31/21 Retained Earnings...
An audit revealed that in determining these amounts, the ending inventory for 2016 was overstated by...
An audit revealed that in determining these amounts, the ending
inventory for 2016 was overstated by $22,000. The inventory balance
on December 31, 2017, was accurately stated. The company uses a
periodic inventory system.
Required:
1. Restate the partial income statements to
reflect the correct amounts, after fixing the inventory error.
2-a. Compute the gross profit percentage for
each year (a) before the correction and (b) after
the correction.
2-b. Does the pattern of gross profit
percentages lend confidence to...
Maria Company reported these income statement data for a 2-year period. Sales 2022 2021 $305,000 $256,200...
Maria Company reported these income statement data for a 2-year period. Sales 2022 2021 $305,000 $256,200 48.800 36.600 246,440 211,060 Beginning inventory Cost of goods purchased Cost of goods available for sale 295,240 247,660 Ending inventory Cost of goods sold 61,000 234,240 $70,760 48,800 198.860 $57,340 Gross profit Maria uses a periodic inventory system. The inventories at January 1, 2021 and December 31, 2022, are correct. However, the ending inventory at December 31, 2021 is overstated by $4.880. Prepare correct...
Sandra Company reported these income statement data for a 2-year period. 2022 2021 Sales $245,000 $205,800...
Sandra Company reported these income statement data for a 2-year period. 2022 2021 Sales $245,000 $205,800 Beginning inventory 39,200 29,400 197,960 169,540 Cost of goods purchased Cost of goods available for sale 237,160 198,940 Ending inventory 49,000 39,200 Cost of goods sold 188,160 159,740 Gross profit $56,840 $46,060 Sandra uses a periodic inventory system. The inventories at January 1, 2021 and December 31, 2022, are correct. However, the ending inventory at December 31, 2021 is overstated by $3,920. Prepare correct...
What is the cumulative effect of the inventory error on total gross profit for the 2...
What is the cumulative effect of the inventory error on total gross profit for the 2 years? (If answer is zero please enter 0, do not leave any field blank.) Total gross profit for the two years $ Sandra Company reported these income statement data for a 2-year period. 2022 2021 Sales $245,000 $205,800 Beginning inventory 39,200 29,400 Cost of goods purchased 197,960 169,540 Cost of goods available for sale 237,160 198,940 Ending inventory 49,000 39,200 Cost of goods sold...
Angela Company reported these income statement data for a 2-year period. 2022 2021 $265,000 $222,600 Sales Beginning in...
Angela Company reported these income statement data for a 2-year period. 2022 2021 $265,000 $222,600 Sales Beginning inventory 42,400 31,800 Cost of goods purchased 214,120 183,380 Cost of goods available for sale 256,520 215,180 Ending inventory 53,000 42,400 Cost of goods sold 172,780 203,520 Gross profit $61,480 $49,820 Angela uses a periodic inventory system. The inventories at January 1, 2021 and December 31, 2022, are correct. However, the ending inventory at December 31, 2021 is overstated by $4,240. Prepare correct...
A company understated its ending Inventory balance by $9,000 in 2021. What impact will this error have on cost of goods sold and gross profit in 2021 and 2022? 2021 Cost of goods sold Gross profit 2022 Cost of goods sold Gross profit
A company understated its ending inventory balance by $8,000 in 2021. What impact will this error have on cost of goods sold and gross profit in 2021 and 2022? Cost of goods sold Gross profit Understated Understated 1 $ $ 2021 8,000 8,000 Cost of goods sold Gross profit Not affected Not affected 2022 $ S 0 0
TULUI 30,000 30,000 Glacier made two errors: (1) 2020 ending inventory was overstated by $5,500, and (2) 2021 ending inventory was understated by $4,000. Instructions a. Calculate the correct cost of goods sold and ending inventory for each year. b. Describe the impact of the errors on profit for 2020 and 2021 and on owner's equity at the end of 2020 and 2021. c. Explain why it is important that Glacier Fishing Gear correct these errors as soon as they...
Given the following Ending Inventory errors for the Portland Company: Ending Inventory Error Year Overstated $30 2020 Understated $40 2021 Indicate the error in the following items: Select one: a. 2022 Net Income 12/31/21 Retained Earnings Understated $10 No error b. 2022 Net Income 12/31/21 Retained Earnings Overstated $10 No error C. 2022 Net Income 12/31/21 Retained Earnings Understated $40 Understated $40 d. 2022 Net Income 12/31/21 Retained Earnings Overstated $40 Understated $40 e. 2022 Net Income 12/31/21 Retained Earnings...
An audit revealed that in determining these amounts, the ending
inventory for 2016 was overstated by $22,000. The inventory balance
on December 31, 2017, was accurately stated. The company uses a
periodic inventory system.
Required:
1. Restate the partial income statements to
reflect the correct amounts, after fixing the inventory error.
2-a. Compute the gross profit percentage for
each year (a) before the correction and (b) after
the correction.
2-b. Does the pattern of gross profit
percentages lend confidence to...
Maria Company reported these income statement data for a 2-year period. Sales 2022 2021 $305,000 $256,200 48.800 36.600 246,440 211,060 Beginning inventory Cost of goods purchased Cost of goods available for sale 295,240 247,660 Ending inventory Cost of goods sold 61,000 234,240 $70,760 48,800 198.860 $57,340 Gross profit Maria uses a periodic inventory system. The inventories at January 1, 2021 and December 31, 2022, are correct. However, the ending inventory at December 31, 2021 is overstated by $4.880. Prepare correct...
Sandra Company reported these income statement data for a 2-year period. 2022 2021 Sales $245,000 $205,800 Beginning inventory 39,200 29,400 197,960 169,540 Cost of goods purchased Cost of goods available for sale 237,160 198,940 Ending inventory 49,000 39,200 Cost of goods sold 188,160 159,740 Gross profit $56,840 $46,060 Sandra uses a periodic inventory system. The inventories at January 1, 2021 and December 31, 2022, are correct. However, the ending inventory at December 31, 2021 is overstated by $3,920. Prepare correct...
What is the cumulative effect of the inventory error on total gross profit for the 2 years? (If answer is zero please enter 0, do not leave any field blank.) Total gross profit for the two years $ Sandra Company reported these income statement data for a 2-year period. 2022 2021 Sales $245,000 $205,800 Beginning inventory 39,200 29,400 Cost of goods purchased 197,960 169,540 Cost of goods available for sale 237,160 198,940 Ending inventory 49,000 39,200 Cost of goods sold...
Angela Company reported these income statement data for a 2-year period. 2022 2021 $265,000 $222,600 Sales Beginning inventory 42,400 31,800 Cost of goods purchased 214,120 183,380 Cost of goods available for sale 256,520 215,180 Ending inventory 53,000 42,400 Cost of goods sold 172,780 203,520 Gross profit $61,480 $49,820 Angela uses a periodic inventory system. The inventories at January 1, 2021 and December 31, 2022, are correct. However, the ending inventory at December 31, 2021 is overstated by $4,240. Prepare correct...
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