Question: During its 2017 year-end inventory count, Lamaline Ltd. included inventory it had received on consignment from a supplier. Lamaline uses a periodic inventory control system.

During its 2017 year-end inventory count, Lamaline Ltd. included inventory it had received on consignment from a supplier. Lamaline uses a periodic inventory control system. Explain the impact of this error on the following:
a. 2017 ending inventory
b. 2017 cost of goods sold
c. 2017 gross margin
d. 2017 net income

Step by Step Solution

★★★★★

3.39 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Ending inventory is overstated since Lamline doesnt own the inventory ... 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)

408-B-M-A-I (2713).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Explain the impact of a mismatch in supply and demand. What strategies can companies adopt to influence demand?

Explain the impact of a decline in interest rates on: a. An investor's required rate of return. b. The present value of existing bonds. c. The prices of existing bonds.

According to the January 31, 2024, physical imventory count, Biossom Company has $20000 in inventory on hand at year end. in addition, at year end the company has $1100 of merchandise in transit...

******MY PREVIOUS TWO QUESTIONS WERE INCORRECTLY ADDED! PLEASE IGNORE/ DELETE!!!!************ The following errors were discovered on the books of Larkspur Inc., during the preparation of the 2017...

In 2018, the controller of Sytec Corporation discovered that $42,000 of inventory purchases were incorrectly charged to advertising expense in 2017. In addition, the 2017 year-end inventory count...

JETRO CORPORATION Unadjusted Trial Balance As Of December 31, 2019 DEBIT CREDIT P 380,000.00 2,000,000.00 1,260,000.00 239,200.00 150,000.00 140,000.00 2,490,000.00 357,000.00 440,000.00 920,000.00...

Question 2 19 marks) You are the bookkeeper of Mel Traders. You undertake a bank reconciliation at the end of every month. Mel Traders received its bank stafement for the month ending 31 May 2021....

po Adobe Acrobat Reader DC 20 Columns Comp... 21 Influence Liner ACCT 102 MAIN AS... * 3 / 9 66,7% IGNORE VAT You have recently been appointed as the accountant of Exquisite Pools (Ply) Ltd...

Need answers for only question 4 and 5. Background You are the audit manager of JDM, an accounting firm with offices in the Sydney metropolitan area. JDM is a middle tier auditing firm specialising...

You have accumulated $7,500 and are looking for the best rate of return that can be earned over the next year. A bank savings account will pay 6%. A one-year bank certificate of deposit will pay 8%,...

Below there is sample of heights of men from certain area in cm 177, 160, 165, 182, 190, 177, 180 (a) Determine 95% confidence interval for expected value of height. (b) Determine 99% confidence...

The profit contribution each segment makes toward covering a company's common fixed costs is called contribution marginsegment margin

You are considering investing $82,000 in new equipment. You estimate that the net cash flows will be $21,000 during the first year, but will increase by $2,800 per year the next year and each year...

Virtually all entities prepare financial statements on an annual basis. For example, Leons prepares its statements for a calendar year. Provide three reasons why entities report on an annual basis....

What is comprehensive income? How does it differ from net income?

Explain why each of the following would be classified as assets on an entitys balance sheet: a. cash b. rent paid for in advance c. an oven in a restaurant d. shares of other corporations owned by...

Conceptual Questions-1 (10 points) Choose TRUE/FALSE for the statements below from A to C. Make your selection clear and distinct, otherwise you will not get credit. Let an investor be considering...

A firm recently issued $1, 000 par value, 20-year bonds with a coupon rate of 9%. Coupon interest payments will be paid semi-annually. The bonds sold at par value, but the firm paid notation costs...

The 2021 income statement of Adrian Express reports sales of $17,595,000, cost of goods sold of $10,887,500, and net income of $1,650,000. Balance sheet information is provided in the following...