None 20Which of the following is correct when, in the same year, beginning inventory is understated by $1,400 and ending Inventory is understated by $750?B02:29:10Multiple ChoiceNet income is overstated by $650.Net income is understated by $2,150.Net income is understated by $650.Net income is overstated by $2,150.

Income statement is a financial statement that shows profitability, total revenue and total…

20 Which of the following is correct when, in the same year, beginning inventory is understated by $1,400 and ending inventory is understated by $750? 02:29:10 Multiple Choice Net income is overstated by $650. Net income is understated by $2,150. Net income is understated by $650. Net income is overstated by $2,150.

20 Which of the following is correct when, in the same year, beginning inventory is understated by $1,400 and ending inventory is understated by $750? 02:29:10 Multiple Choice Net income is overstated by $650. Net income is understated by $2,150. Net income is understated by $650. Net income is overstated by $2,150.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 1CE: LO1 If the ending inventory is overstated by 10,000, indicate what, if anything, is incorrect about...

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If Inventory on 1.1.2020 was OMR 240,000, Inventory on 31.12.2020 was OMR 320,000 and cost of goods sold was OMR 900,000, the Inventory conversion period will be: a. 113.55 days b. 129.78 days c. None of these d. 97.33 days
Which of the following is correct when, in the same year, beginning inventory is overstated by $2,200 and ending inventory is understated by $790? Multiple Choice Net income is understated by $1,410. Net Income is understated by $2,990. Net income is overstated by $1,410. Net Income is overstated by $2,990.
A. Based on the fundamental principle of IAS2, identify two (2) circumstances where the NRV of inventory might be lower than its cost? B. Storm Inc. had 500 units of Product X at 30 June 2020 in inventory. The product had been purchased at list price of $18 per unit and normally sells for $24 per unit. Additional information relating to the units in inventory: VAT – 10%; wharehousing cost - $0.55 per unit; purchase discount - $0.40 per unit; carriage inwards - $0.60 per unit. Recently , Product X started to deteriorate but can still be sold for $24 per unit, provided that some rectification/re-packaging work is undertaken at a cost of $3 per unit. Required: At what amount would Product X be required to be stated on 30 June 2020? Provide detailed analysis to support your answer
The total value of ending inventory at the end of the quarter is: a. P750,000 c. P721,500 d. P788,500
The following information relates to a company's year-end inventory: Cost of inventory OMR 1880; Selling price of the inventory OMR 2000; Normal profit margin is 10% of selling price, and cost of completion and disposal OMR 250. As per IAS 2, what is the company's year-end inventory balance? a. 1750. b. 1880. C. 2000. d. 1800.
Whitby Inc. is a wholesaler that uses a perpetual inventory system. The company's accounting records provided the following transactions for Product B during the fiscal year ended on December 31, 2020. Date Transactions Units Unit Cost Sale Price March 5 Purchase $ 9 19,000 10,000 8,000 16,000 June 15 Sale $27 September 19 November 20 Purchase Sale 11 30 Additional information: • The beginning inventory consisted of 7,000 units at a total cost of $56,000. • All sales are made on account with credit terms, 2/10, n/30. • Customers who purchased 10,000 units on November 20 paid the amount due within the discount period. All other customers paid their accounts receivable after the discount period. At the start of each question below, we indicate whether the First-in, First-out (FIFO) method or the Weighted Average Cost (WAC) method is used.
Rizza Co. has an average age of inventory equal to 25 days. If its end ofyear inventory level is P8,500, then what does that imply for the cost ofgoods sold during the year? A. P582B. P21,250C. P124,100D. P4964
If Wrecking Ball uses a periodic inventory system, the cost of the inventory using the periodic average cost flow assumption at January 31, 2022 is? a. P78,960 b. P98,000 c. P84,840 d. P98,240
b) A company had an average inventory last year of $180,000 and its inventory turnover was 5. If sales volume and unit cost remain the same this year as last and inventory turnover is 8 this year, what will average inventory have to be during the current year? (Round answer to 0 decimal places, e.g. 125.) Average Inventory $enter the average inventory in dollars rounded to 0 decimal places
The following information relates to a company’s year-end inventory: Cost of inventory OMR 1880; Selling price of the inventory OMR 2000; Normal profit margin is 10% of selling price, and cost of completion and disposal OMR 250. As per IAS 2, what is the company’s year-end inventory balance?
A company has four types of products in its inventory as shown below: Product Quantity Cost Net Realizable Value A 15 $ 7 $ 10 B 10 18 12 C 20 8 6 D 15 11 15 When accounting for the lower of cost or net realizable value by individual items, the year-end adjustment to write down inventory would be:
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