Question

Donna is a cost accountant for Northwind Corp. She is very efficient and hard-working; however, she occasionally transposes numbers when recording transactions. While working late recently, Donna accidentally recorded $19,000 of advertising cost instead of the correct $91,000. The transaction was correctly recorded in all other respects.

Required:
Explain how Donna's error will affect the following:
1. Manufacturing Costs.
2. Inventory.
3. Cost of Goods Sold.
4. Period Expenses.
5. Net Income.



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  • CreatedJuly 17, 2015
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