For each of the following inventory errors occurring in 2011, determine the effect of the error on 2011's cost of goods sold, net income, and retained earnings. Assume that the error is not discovered until 2012 and that a periodic inventory system is used. Ignore income taxes.
Answer to relevant QuestionsIndicate with the appropriate letter the nature of each adjustment described below:Type of AdjustmentA. Change in accounting principle (reported retrospectively)B. Change in accounting principle (exception reported ...Shown below are net income amounts as they would be determined by Weihrich Steel Company by each of three different inventory costing methods ($ in 000s).Required:1. Assume that Weihrich used FIFO before 2011, and then in ...You have been hired as the new controller for the Ralston Company. Shortly after joining the company in 2011, you discover the following errors related to the 2009 and 2010 financial statements:a. Inventory at 12/31/09 was ...Webster Products, Inc., adopted the dollar-value LIFO method of determining inventory costs for financial and income tax reporting on January 1, 2011. Webster continues to use the FIFO method for internal decision-making ...Ray Solutions decided to make the following changes in its accounting policies on January 1, 2011:1. Changed from the cash to the accrual basis of accounting for recognizing revenue on its service contracts.2. Adopted ...
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