Bright Corp. understated the cost of its inventory on 12/31/23 by $50,000. Its physical inventory count...

  

 

 

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Bright Corp. understated the cost of its inventory on 12/31/23 by $50,000. Its physical inventory count was correct in the subsequent year, 2024. As a result of the 2023 error, what will be the effect on Bright's cost of goods sold, net income, inventory, and retained earnings balances at the end of 20232 Ignore tax effects. Assuming the error from 2023 was not corrected, what will be the effect on Bright's cost of goods sold, net income, inventory, and retained earnings balances at the end of 2024 (the subsequent year)? Ignore tax effects. Star Corp., a local retailer, observed the following during their physical inventory count of one of their products on 12/31/23: ● 500 units of the product are on its sales floor 100 units of the product were ordered from the supplier. On 12/31/23, the units were in transit from the supplier to Star Corp. The units are being shipped F.O.B. shipping point. 5 units of the product are being returned from one of Star's customers. The units are in transit on 12/31/23 and are being shipped F.O.B. destination point back to Star. 50 units of the product were placed on consignment at another company. Out of these 50 units, the consignee sold 20 units, and 30 units remain on hand. 10 units of the product have been set aside for a customer's special order. As of 12/31/23, these units have not yet been shipped to the customer. Question: How many units of Product ZZZ should Star Corp. report in its ending inventory count on 12/31/23? Bright Corp. understated the cost of its inventory on 12/31/23 by $50,000. Its physical inventory count was correct in the subsequent year, 2024. As a result of the 2023 error, what will be the effect on Bright's cost of goods sold, net income, inventory, and retained earnings balances at the end of 20232 Ignore tax effects. Assuming the error from 2023 was not corrected, what will be the effect on Bright's cost of goods sold, net income, inventory, and retained earnings balances at the end of 2024 (the subsequent year)? Ignore tax effects. Star Corp., a local retailer, observed the following during their physical inventory count of one of their products on 12/31/23: ● 500 units of the product are on its sales floor 100 units of the product were ordered from the supplier. On 12/31/23, the units were in transit from the supplier to Star Corp. The units are being shipped F.O.B. shipping point. 5 units of the product are being returned from one of Star's customers. The units are in transit on 12/31/23 and are being shipped F.O.B. destination point back to Star. 50 units of the product were placed on consignment at another company. Out of these 50 units, the consignee sold 20 units, and 30 units remain on hand. 10 units of the product have been set aside for a customer's special order. As of 12/31/23, these units have not yet been shipped to the customer. Question: How many units of Product ZZZ should Star Corp. report in its ending inventory count on 12/31/23?

Answer rating: 100% (QA)

Lets start by analyzing the effects of the inventory understatement for Bright Corp in 2023 1 Effect on Cost of Goods Sold COGS at the end of 2023 The understatement of inventory means that the cost o... View the full answer