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lesya692 [45]
3 years ago
5

At december​ 31, 2018​,stevenson company overstated ending inventory by​ $36,000. how does this error affect cost of goods sold

and net income for 2018​?
Business
1 answer:
jarptica [38.1K]3 years ago
5 0

The Cost of Good Sold is $36,000 lower than it should have been and the net income is $36,000 higher than it should have been.

There are two formulas that are important to know for this question. The first is Beg. Inventory + Purchases - Ending Inventory = COGS. The second formula is Sales - Cost of Good Sold = Gross Profit.

If you reported a higher ending inventory it is going to result in a lower value for Cost of Good Sold. In this case the company had too high of an ending inventory by $36,000, which mean that the COGS is $36,000 lower than actual.

When you have a COGS that is lower than it should be you are going to have a gross profit which is overstated. The Income is overstated by $36,000.

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The Supreme Court separated the "mandatory" element of the Federal Sentencing Guidelines for Organizations from their advisory r
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Answer:

C) violated the Sixth Amendment right to a jury trial.

Explanation:

Federal Sentencing Guidelines should be guided by the following principles:

  • The court should order the organization to remedy any harm caused.
  • If the primary purpose of the organization was to commit crimes, then the court should set a fine that strips away all the assets from the organization.
  • The court should set fines based on how serious the offenses were and the degree of culpability of the organization.
  • The court can impose a probation sentence if it believes that the organization will take steps to reduce the likelihood of future criminal conduct.

The sentencing guidelines should offer incentives for organizations to eliminate criminal conduct.

7 0
3 years ago
The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
Elza [17]

Answer:

Amount of underapplied or overapplied overhead cost for the year

$97000 - Underapplied

Schedule of cost of goods manufactured for the year

Direct Material                                3885000

Direct Labor                                      60000

Overheads                                       376000

Total Manufacturing Costs             4321000

Add Opening Inventory WIP           400000

Less Closing Inventory WIP            (700000)

Cost of Goods Manufactured         4021000

Explanation:

Amount of underapplied or overapplied overhead cost for the year

Underapplied or Overapplied overhead cost =Actual Overhead - Applied Overhead

$473000-$376000= $ 97000

Schedule of cost of goods manufactured for the year

<em>Direct Materials  Calculation  </em>                                  

Opening                                                      200000

Add Purchases                                         4000000

Available                                                    4200000

Less Closing Material                                 300000

Materials Consumed                                  3900000

Less Indirect Materials                                 15000

Direct Materials Consumed                       3885000

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i think it is B

Explanation:

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Answer:

Mark Parker has been very effective as a strategist for the following reasons:

Explanation:

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