10 A company uses a periodic inventory system. Beginning Inventory on January 1 was overstated by...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
10 A company uses a periodic inventory system. Beginning Inventory on January 1 was overstated by $32,000, and its ending Inventory on December 31 was understated by $62,000. These errors were not discovered until the next year. As a result, cost of goods sold for the current year was: Skipped Multiple Cholce Understated by $94,000. Overstated by $94,000. Understated by $30,000. Overstated by $30,000. 11 Skipped A company understated its ending Inventory In Year 1 by $25,000 and also understated its ending Inventory In Year 2 by $20,000. Neither error was discovered until Year 3. As a result, of these two errors, gross profit for Year 2 was: Multiple Choice Understated by $45.000. Overstated by $25,000. Overstated by $5,000. Understated by $20,000. 12 A company uses a periodic Inventory system. Beginning Inventory on January 1 was understated by $30,000, and its ending Inventory on December 31 was understated by $17,000. In addition, a purchase of merchandise costing $20,000 was incorrectly recorded as a $2,000 purchase. None of these errors were discovered until the next year. As a result, cost of goods sold for the current year was: Skipped Multiple Cholce Overstated by $31,000. Understated by $31,000. Understated by $48,000. Overstated by $5,000. 13 On March 1, 2024, a company entered into an agreement with the state to obtain the rights to operate a mineral mine for $6 million. The mine is expected to produce 100,000 tons of mineral. As part of the agreement, the company agrees to restore the land to its original condition after mining operations are completed in approximately five years. Management has provided the following possible outflows for the restoration costs that will occur five years from now: (PV of $1. PVA of $1) Skipped Cash Outflow $ 300,000 400,000 500,000 Multiple Choice The company's credit-adjusted risk-free Interest rate is 10%. During 2024, the company extracted 18.000 tons of ore from the mine. How much accretion expense will the company record in Its Income statement for the 2024 calendar year? O $30,326 $27,294 Probability 25% $24,837 50% 25% $20,697 5 Skipped A company using the conventional retall method has the following Information for the current year's operations: Beginning inventory Purchases Net markups Net markdowns Net sales Multiple Choice Management calculates the cost-to-retail percentage as 60%. equal to cost of $600,000 (= $100,000-$500,000) divided by retall of $1,000,000 (= $150,000 $800,000-$85,000-$35,000). Which of the following statements Is correct? O Cost $ 100,000 500,000 O Retail $ 150,000 800,000 85,000 35,000 750,000 The retall amount should be $1,035,000, excluding net markdowns. The retall amount should be $950,000, excluding net markups and net markdowns. The cost-to-retall percentage should be calculated as cost of $600,000 divided by retall of $750,000 (Net sales). The cost and retall amounts should not include beginning Inventory of $100,000 and $150,000, respectively. 6 Skipped A company uses the conventional retail Inventory method to account for Inventory. The following information relates to current year's operat Beginning inventory and purchases Net markups Net markdowns Net sales What amount should be reported as cost of goods sold for the year? Multiple Choice O $273.600 $272,861 Cost $ 313,500 $275,000 None of the other answer choices are correct. Retail $ 540,000 30,000 20,000 480,000 7 Skipped Portman Incorporated uses the conventional retail Inventory method. Expressed in millions of dollars, Information about Portman's 2024 Inventory account is expressed in the table belo Cost $ 55 1,160 Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns 115 255 100 Normal spoilage 60 Net sales 1,940 What is the value of Portman's Inventory at 12/31/2024? Multiple Choice O $150 million $252 million 30 45 $300 million Retail $ 90 2,170 None of the other answer choices are correct. 00 8 Skipped On January 1, 2024, the Coldstone Corporation adopted the dollar-value LIFO retall Inventory method. Beginning Inventory at cost and at retall were $180,000 and $282,000, respectively. Net purchases during the year at cost ar retall were $604,500 and $920,000, respectively. Markups during the year were $10,000. There were no markdowns. Net sales for 2024 were $900,000. The retail price Index at the end of 2024 was 1.04. What is the inventory balance that Coldstone would report In Its 12/31/2024 balance sheet? Multiple Choice O O $312,000 $195.000 $192.168 $202,800 9 A company reported Inventory in the 2023 year-end balance sheet, using the FIFO method, as $154,000. In 2024, the company decided to change its Inventory method to LIFO. If the company had used the LIFO method in 2023, the company estimates that ending Inventory would have been in the range $130,000-$135,000. What adjustment would the company make for this change in Inventory method? Skipped Multiple Choice Debit Retained earnings for $19,000; Credit Cost of goods sold for $19,000 Debit Retained earnings for $24,000; Credit Inventory for $24,000 No adjustment is necessary. Debit Inventory for $21,500; Credit Cost of goods sold for $21,500 10 A company uses a periodic inventory system. Beginning Inventory on January 1 was overstated by $32,000, and its ending Inventory on December 31 was understated by $62,000. These errors were not discovered until the next year. As a result, cost of goods sold for the current year was: Skipped Multiple Cholce Understated by $94,000. Overstated by $94,000. Understated by $30,000. Overstated by $30,000. 11 Skipped A company understated its ending Inventory In Year 1 by $25,000 and also understated its ending Inventory In Year 2 by $20,000. Neither error was discovered until Year 3. As a result, of these two errors, gross profit for Year 2 was: Multiple Choice Understated by $45.000. Overstated by $25,000. Overstated by $5,000. Understated by $20,000. 12 A company uses a periodic Inventory system. Beginning Inventory on January 1 was understated by $30,000, and its ending Inventory on December 31 was understated by $17,000. In addition, a purchase of merchandise costing $20,000 was incorrectly recorded as a $2,000 purchase. None of these errors were discovered until the next year. As a result, cost of goods sold for the current year was: Skipped Multiple Cholce Overstated by $31,000. Understated by $31,000. Understated by $48,000. Overstated by $5,000. 13 On March 1, 2024, a company entered into an agreement with the state to obtain the rights to operate a mineral mine for $6 million. The mine is expected to produce 100,000 tons of mineral. As part of the agreement, the company agrees to restore the land to its original condition after mining operations are completed in approximately five years. Management has provided the following possible outflows for the restoration costs that will occur five years from now: (PV of $1. PVA of $1) Skipped Cash Outflow $ 300,000 400,000 500,000 Multiple Choice The company's credit-adjusted risk-free Interest rate is 10%. During 2024, the company extracted 18.000 tons of ore from the mine. How much accretion expense will the company record in Its Income statement for the 2024 calendar year? O $30,326 $27,294 Probability 25% $24,837 50% 25% $20,697 5 Skipped A company using the conventional retall method has the following Information for the current year's operations: Beginning inventory Purchases Net markups Net markdowns Net sales Multiple Choice Management calculates the cost-to-retail percentage as 60%. equal to cost of $600,000 (= $100,000-$500,000) divided by retall of $1,000,000 (= $150,000 $800,000-$85,000-$35,000). Which of the following statements Is correct? O Cost $ 100,000 500,000 O Retail $ 150,000 800,000 85,000 35,000 750,000 The retall amount should be $1,035,000, excluding net markdowns. The retall amount should be $950,000, excluding net markups and net markdowns. The cost-to-retall percentage should be calculated as cost of $600,000 divided by retall of $750,000 (Net sales). The cost and retall amounts should not include beginning Inventory of $100,000 and $150,000, respectively. 6 Skipped A company uses the conventional retail Inventory method to account for Inventory. The following information relates to current year's operat Beginning inventory and purchases Net markups Net markdowns Net sales What amount should be reported as cost of goods sold for the year? Multiple Choice O $273.600 $272,861 Cost $ 313,500 $275,000 None of the other answer choices are correct. Retail $ 540,000 30,000 20,000 480,000 7 Skipped Portman Incorporated uses the conventional retail Inventory method. Expressed in millions of dollars, Information about Portman's 2024 Inventory account is expressed in the table belo Cost $ 55 1,160 Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns 115 255 100 Normal spoilage 60 Net sales 1,940 What is the value of Portman's Inventory at 12/31/2024? Multiple Choice O $150 million $252 million 30 45 $300 million Retail $ 90 2,170 None of the other answer choices are correct. 00 8 Skipped On January 1, 2024, the Coldstone Corporation adopted the dollar-value LIFO retall Inventory method. Beginning Inventory at cost and at retall were $180,000 and $282,000, respectively. Net purchases during the year at cost ar retall were $604,500 and $920,000, respectively. Markups during the year were $10,000. There were no markdowns. Net sales for 2024 were $900,000. The retail price Index at the end of 2024 was 1.04. What is the inventory balance that Coldstone would report In Its 12/31/2024 balance sheet? Multiple Choice O O $312,000 $195.000 $192.168 $202,800 9 A company reported Inventory in the 2023 year-end balance sheet, using the FIFO method, as $154,000. In 2024, the company decided to change its Inventory method to LIFO. If the company had used the LIFO method in 2023, the company estimates that ending Inventory would have been in the range $130,000-$135,000. What adjustment would the company make for this change in Inventory method? Skipped Multiple Choice Debit Retained earnings for $19,000; Credit Cost of goods sold for $19,000 Debit Retained earnings for $24,000; Credit Inventory for $24,000 No adjustment is necessary. Debit Inventory for $21,500; Credit Cost of goods sold for $21,500
Expert Answer:
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
State which of the following topologies are not solvable: (i) 5 nodes, 10 branches, 5 independent voltage sources; (ii) 7 nodes, 12 branches, 7 indepen- dent current sources; (iii) 4 nodes, 7...
-
In Exercises find the derivative of the function. y = x(x + 1)
-
How could HR managers at the Container Store analyze the effectiveness of HRM to ensure they are helping the company become more profitable? Would your ideas compromise the employees-first policy?
-
The metro areas with the lowest and highest unemployment In June 2019, Ames, Iowa, had one of the lowest unemployment in the United States at 2.3 percent of the workforce. At the other end of the...
-
Refer to the information in QS 19-16. The company sells its product for $50 per unit. Due to new regulations, the company must now incur $2 per unit of hazardous waste disposal costs and $8,500 per...
-
Crede Company budgeted selling expenses of $30,000 in January, $35,000 in February, and $40,000 in March. Actual selling expenses were $31,000 in January, $34,500 in February, and $47,000 in March....
-
5.) A hoop of 6 kg and radius .15 m is rolling down a 40-degree incline with 5 m length, what acceleration does it travel down the incline? How long does it take to get down the incline?
-
[A] 0.4 0.2 0.6 0.2 0.2 [B] 0.4 0.4 0.1 0.1 0.2 [C] 0.2 0.4 0.2 0.2 0.4 Initial Rate 160 80 15 5 20 What is the order of the reaction with respect to A?
-
What does sales volume variance mean?
-
What is the fixed overhead volume variance?
-
A company pays a cost of $7.00 per unit at a volume of 10,000 units and $2.00 per unit above 10,000 units. Calculate the total cost when the company uses 9,000 units, 12,000 units, and 15,000 units.
-
How is the profit margin ratio calculated?
-
What are the cost centers in responsibility reports?
-
The students are required to write a business finance plan for their business idea as guided below. The plan should cover the following: MY business is an Auto Repair shop with Spares Outlet 1....
-
H.J. Heinzs annual dividends were as follows: 1990 ..............$0.540 1991.............. 0.620 1992 .............. 0.700 1993.............. 0.780 1994 .............. 0.860 1995 .............. 0.940...
-
Presented below are two independent revenue arrangements for Colbert Company. Instructions Respond to the requirements related to each revenue arrangement. a. Colbert sells 3D printer systems....
-
Walker Company is a manufacturer and lessor of computer equipment. What should be the nature of its lease arrangements with lessees if the company wishes to account for its lease transactions as...
-
Kim Inc. recently noted that its 4% preference shares and 4% participating preference shares, which are both cumulative, have priority as to dividends up to 4% of their par value. Its participating...
-
The following accounts and amounts (balances are normal balances) were taken from the records of Prider Manufacturers Ltd at 30 June 2019. Required (a) Prepare a cost of goods manufactured statement...
-
The following data were taken from the records of Manik Manufacturing Ltd for the year ended 30 June 2019. Required (a) Prepare the cost of goods manufactured schedule for the year ended 30 June...
-
The following demonstration problem illustrates the use of the general journal, the four special journals introduced here, and the general ledger with two subsidiary ledgers. Sidney Carton began...
Study smarter with the SolutionInn App