Question: Albany Addictive Apples counted and valued its inventory using FIFO on December 31, 2020 and on December 31, 2021 and reported the calculated values on

Albany Addictive Apples counted and valued its inventory using FIFO on December 31, 2020 and on December 31, 2021 and reported the calculated values on each respective balance sheet. Albany Additive Apples had zero consignment inventory on hand at December 31, 2021 and had some consignment on hand at December 31, 2020. If consignment inventory had erroneously been counted and included in inventory in the December 31, 2020 count, which of the following is true?

Inventory was understated at December 31, 2020
Net income was understated in 2020
Inventory was overstated at December 31, 2021
None of the other alternatives are correct
Net income was understated in 2021

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

answer/correct the wrong questions below (has a red X), and answer question 2. Explain your reasoning for the answer 2 0.2 points eBook At the end of the month of July you close the books of your...

Chapter 8 - Accounting for Inventories q1: If the cost to retail percentage for a firm using the retail method was 70% and the cost value of the inventory was estimated to be $21, then the retail...

Albany Addictive Apples counted and valued its inventory using FIFO on December 3 1 , 2 0 1 3 and on December 3 1 , 2 0 1 4 and reported the calculated values on each respective balance sheet. Albany...

Albany Addictive Apples counted and valued its inventory using FIFO on December 31,2020 and on December 31,2021 and reported the calculated values on each respective balance sheet. Albany Additive...

7.Albany Addictive Apples counted and valued its inventory using FIFO on December 31, 2013 and on December 31, 2014 and reported the calculated values on each respective balance sheet. Albany...

7Albany Addictive Apples counted and valued its inventory using FIFO on December 31, 2013 and on December 31, 2014 and reported the calculated values on each respective balance sheet Albany Additive...

Annual Report Cases CP13-1 Computing Ratios LO13-4, 13-5,13-6,13-7 Refer to the financial statements and footnotes of American Eagle Outfitters given in Appendix B at the end of this book. Compute...

1 Anda seorang pembantu akaun di syarikat Aniq Ammar Enterprise. Pada 31 Disember 2020, anda sedang mengumpulkan semua transaksi perniagaan Aniq Ammar Enterprise untuk menyelaras maklumat dan mengira...

Green Thumb Ltd. (GT Ltd.) is a Canadian-controlled private corporation operating a franchise gardening and plant nursery retail store in Kamloops, BC. Bob Green, is the company's sole shareholder...

Please Help! Question 12 Question 1 points Sherrell Co. reported net income of $50,000 for 2017. During 2018, the company discovered that the ending inventory for 2016 and 2017 were both understated...

The daily charges, in dollars, for a sample of 15 hotels and motels operating in South Carolina are provided on the WeissStats CD. The data were found in the report South Carolina Statistical...

Want a brief explanation In the hierarchy of classification, which grouping will have the smallest number of organisms with a maximum of characteristics in common and which will have the largest...

Which costing method produces the highest operating income? Explain why. The cost method produces the highest operating income. The primary reason for this is that are distributed across the entire...

Since its inception, Eco Plastics Company has been revolutionizing plastic and trying to do its part to save the environment. Eco's founder, Marion Cosby, developed a biodegradable plastic that her...