Question: Due to ineffective controls while counting its inventory, Walker & Comer, Inc., double-counted $50,000 of inventory at the end of the current year. Before discovering

Due to ineffective controls while counting its inventory, Walker & Comer, Inc., double-counted $50,000 of inventory at the end of the current year. Before discovering this error, the company's was $670,000. How will correction of this error affect the company's inventory and cost of goods sold figures?

Step by Step Solution

★★★★★

3.40 Rating (175 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Before the error was corrected the ending inventory was 670000 including the addition... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

290-B-M-A-I (3051).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

MULTIPLE-CHOICE QUESTIONS 1. The auditor is testing the operating effectiveness of controls in the revenue cycle and notes the following: (a) the organization does not regularly follow its credit...

For each of the following brief scenarios, assume that you are reporting on a clients financial statements. Reply as to the type(s) of opinion (per below) possible for the scenario. In addition: ...

You have joined a public accounting firm as a junior auditor and have been assigned to the audit team for one of your firms largest audit engagements, Cold Beverages Corp. (CB), a large public...

1. Murray, Inc., purchased a new inventory item two times during the month of April, as follows: Apr. 5 100 units @ $5.00 Apr. 15 100 units @ $5.05 a. What is the amount of the ending inventory of...

Due to ineffective controls while counting its inventory. Walker \& Comer, Inc, double-counted $50,000 of inventory at the end of the current year. Before discovering this error, the company's ending...

Due to ineffective controls while counting its inventory. Walker \& Comec, inc, double-counted $50,000 of inventory at the end of the current year. Before discovering this error, the company's ending...

Q This document has all of the instruction in it. please contact me if you have any questions. Download Attachment: (1) On October 5, Narveson Company buys merchandise on account from Rossi Company....

This document has all of the instruction in it. please contact me if you have any questions. (1) On October 5, Narveson Company buys merchandise on account from Rossi Company. The selling price of...

FIFC LO1, BRIEF EXERCISE 8.1 Smalley Co. purchased items of inventory as follows: 4 Jan. 100 units @ $2.00 23 Jan. 120 units @ $2.25 Smalley sold 50 units on 28 January. Compute the cost of goods...

Read the section below, from the BC Employment Standards Act then respond to the prompt given. Hiring children (1) A person must not employ a child under 15 years of age unless the person has...

Write pseudocode for a program which allows the user to input two numbers (X and Y) and a code C. If the code has value 1, the program should output the larger of X and Y and otherwise output the...

Applying TVM The following Course Outcome is assessed in this assignment: MT217-4: Use the Time Value of Money (TVM) concept to assess amortization, annuities, and perpetuities. Introduction: The...

2. Identify the major differences between federal government outlays and spending by state and local governments.

What intercultural and business ethics challenges might Leighton Holdings face as it undertakes operations in the Middle East, China and India? Be careful of any of your own stereotypes that may...

What international management challenges do you think that Leighton Holdings faces as it does business so energetically in the Middle East, China and India?

Think back to your first hour after awakening this morning. List 15 decision-making opportunities that existed during that hour. After you have done that, mark the decision-making opportunities that...

(In Thousands) (USD) Total Revenue EBITDA Operating Income Net Income Revenue per Share EPS from Continuing Operations EPS - Net Income - Diluted Share Outstanding Weighted Average Shares Outstanding...

The amount by which a firm's tax bill is reduced as a result of the depreciation expense is referred to as the depreciation:

QUESTION 5 The Bike Shoppe has total assets of $536,712 and an equity multiplier of 1.36. What is the debt-equity ratio? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I US Paragraph...