Answer:
$2000 understatement of net income
$2000 overstatement of costs of goods sold
Explanation:
In the production process raw materials are inputted in the process, these are converted to work in process, and finally to finished goods.
The finished goods are now sold to the customer.
Since the amount of inventory was understated the balance must be moved from finished goods inventory to finished goods inventory.
The income earned will be understated because inventory will be short of $2,000 and also income will be short by this amount.
Cost of goods sold will be overstated with $2,000 because cost will be allocated to fewer goods, therefore it will be higher per item.
total media ad spending worldwide will rise 7.4% to $628.63 billion in 2018, according to eMarketer's latest report.
People who patronized liquor sellers are called guests. Before those people can be served, the bar man has to decide whether to sell drinks to them or not. Some factors that make one unqualified to buy drinks include: under-age, intoxication, pregnancy, etc. So, the bar man has to assess the guest and decide whether to sell to him or not. Thus, when you are assessing a guest, you are: considering the age of that person, you are determining whether the customer is already drunk, you are checking if the customer is pregnant, if female, etc. When you are assessing a guest, you are getting information about the behavior of the guest.
Answer:
The correct answer would be option A, $125800.
Explanation:
Cost of goods manufactured= Total costs + beginning work in process - Ending work in process
Total costs include Direct Materials, Direct labor and Factory Overheads. So the Above formula can be written as:
CGM = (Direct materials + Direct Labor + Factory overhead) + Beginning WIP - Ending WIP
Now
Direct Materials = Beginning raw materials + Purchased Raw Materials - Ending Raw materials
= 15200+60000-16600= 58600
Now Direct labor given is = 42800
And Factory Overheads = 30000
So,
Total costs= direct materials + Direct Labor + Factory Overhead
Total Costs= 58600 + 42800 + 30000
= 131400
Beginning work in process = 22400
Ending work in process = 28000
NOW Costs of Goods Manufactured/CGM = Total Cost + Beginning WIP -Ending WIP
= 131400+22400-28000
=$125800
