Home / Questions / Determine the effect on cost of goods sold, total assets, and gross margin for 2010 and 20
Determine the effect on cost of goods sold, total assets, and gross margin for 2010 and 2011 if the following inventory errors are not corrected. Indicate your answer with (+) for overstated, (-) for understated, and (0) for no effect.
a.Beginning inventory for 2010 is understated
b.Beginning inventory for 2010 is overstated
c.Ending inventory for 2010 is understated
d.Ending inventory for 2010 is overstated
Effect in 2010 on
Cost of Goods SoldTotal AssetsGross Margin
a.
b.
c.
d.
Effect in 2011 on
Cost of Goods SoldTotal AssetsGross Margin
a.
b.
c.
d.
19) State which of the following inventory methods would best attain the goals of management. Indicate your answer by writing the proper letter in the blank beside each specific goal.
a.FIFO
b.Weighted-averaged.
c.Specific identification
1.________Management wants to report approximate current inventory replacement costs on its year-end balance sheet during a period of rising prices.
2.________Management wants to maximize net income during a period of rising prices.
3.________The company sells yachts, deep-sea fishing boats, and off-shore speed boats.
4.________Management wants to minimize net income during a period of falling prices.
20) State some guidelines a company's management could use to determine the most desirable inventory costing method.
21) Key West Group Ltd.
Inventory Information
For January 2010
Numbers of unitsPrice paid per unit
Purchase January 1st500$50
Purchase January 15th1000$60
Purchase January 25th2000$70
*** There were no units on hand at the beginning of January 2010. On January 31st, 2010, Key West Group sold 1500 units of inventory at $100 each to customers.
Calculate cost of goods sold using FIFO.
22) Inventory data for Freezer Burn Corporation for the year ended December 31, 2010, are as follows:
Beginning inventory50 units at $150 each
March 31 purchase50 units at $155 each
1st quarter sales60 units
June 30 purchase55 units at $160 each
2nd quarter sales70 units
September 30 purchase60 units at $170 each
Compute the perpetual ending inventory balance on December 31, 2010, using:
Dec 07 2019 Read more Less More
Treating psoriasis with the “Doctor fish of Kangal” Psoriasis is a skin disorder with no known cure and no proven effective pharmacological treatment. An alternative trea...
Aug 07 2020In designing mini-piles, should the strength of grout be neglected during assessment
Jul 06 2020Suppose that the starting nominal salary for a new assistant professor in economics was $14,000 for the academic year 1973-74 For the academic year 2015-2016, it was $120...
Apr 24 2020“What evidence is there to support the use of soft tissue mobilization?”
Mar 21 2020A spherical metal ball of radius ro is heated in an oven to a temperature of Ti throughout and is then taken out of the oven and allowed to cool in ambient air at T by co...
Jul 22 2020Find characteristic polynomial of 3x3 matrix A= 1 -1 1 0 1 0 1 -1 1 >
Aug 05 2020(Lessee-Lessor Entries, Balance Sheet Presentation, Sales-Type Lease) (LO 2, 4) Winston Industries and Ewing Inc. enter into an agreement that requires Ewing Inc. to buil...
Mar 17 2020Which of the following is an example of a government program that provides in-kind assistance to the poor?a.Supplemental Security Income (SSI...
Dec 12 2019Beaver Company is investigating the purchase of a new threading machine that costs $18,000. The machine would save about $4,000 per year and would have a salvage value of...
May 24 2020Tomax Corporation has 400 employees and wishes to develop a compensation policy to correspond to its dynamic business strategy. The company wishes to employ a high-qualit...
May 06 2020
Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.
