Answer:
Corrected Net Income for 2011 = $290,000
Corrected Net Income for 2012 = $410,000
Explanation:
Data provided in the question:
The overstated the inventory balance for Dec 31, 2011 = $10,000
The reported Net Income for 2011 = $300,000
The reported Net Income for 2012 = $400,000
Now,
Since the inventory is overstated in the year 2011, it will be subtracted from the reported incorrect Net Income for 2011
Thus,
Corrected Net Income for 2011 = $300,000 - $10,000
= $290,000
And, for the year 2012 the overstated inventory will be added to the reported Net Income for 2012
thus,
Corrected Net Income for 2012 = $400,000 + $10,000
= $410,000
Answer:
$28,700
Explanation:
We know that
Ending work in process inventory = Opening work in process inventory + total manufacturing cost - cost of finished goods manufactured
where,
Total manufacturing cost = cost of direct materials used + direct labor cost + overhead cost
= $408,000 + $56,000 + $72,000
= $536,000
So, the ending work in process inventory would be
= $16,200 + $536,000 - $523,500
= $28,700
<span>This totally new product would be considered a question mark according to the BCG matrix. The reason for this is that no one truly knows how the product will perform in the marketplace. The only real data they have is the projected sales according to projected customer satisfaction surveys and think tanks.</span>
Answer:
The complete answers are below.
Explanation:
a) The main difference between Financial Accounting and Managerail Accounting is its purposes and the stakeholders who make use of the information that each one provides.
While financial accounting refers to the aggregation of accounting information in the financial statements, management accounting refers to the internal processes used to account for business transactions.
For instance: Financial accounting reports on the results of an entire business, Managerial accounting reports at a more detailed level. Financial accounting must comply with various accounting standards, whereas managerial accounting does not have to comply with any standards when information is compiled for internal consumption.
b) The financial statements most frequently provide are: Balance Sheet or Financial Position, Income Statement, Statement of cash flows and Statement of Changes in Equity.
c) In general, financial reports and financial statements differ in the formal status of financial statements in business and accounting, and these respond to standards such as GAAP and IFRS. While the financial reports have a format or presentation rules given by management, the financial statements, in the other hand, are prepared on regular basis as specific entities are required to do so according to applicable laws. It can be said that financial accounting provides financial statements and managerial accounting is responsible for financial reports.