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11111nata11111 [884]
3 years ago
6

Colman Company reports ending inventory in year 1 of $25,000 instead of the correct amount of $20,000. The effects of this error

include:
Year 1 ending inventory is understated and year 1 cost of goods sold is overstated

Year 1 ending inventory is overstated and year 1 cost of goods sold is understated

Year 1 ending inventory is understated and year 1 cost of goods sold is understated

Year 1 ending inventory is overstated and year 1 cost of goods sold is overstated
Business
1 answer:
Elodia [21]3 years ago
6 0

Answer:

Year 1 ending inventory is overstated and year 1 cost of goods sold is understated

Explanation:

The amount of ending inventory is increased by $ 5000 so the ending inventory is overstated and the cost of goods sold is understated as an amount of additional $ 5000 is deducted from it. For better understanding we consider the following

Opening Inventory $ 15000

Purchases $ 50,000

<u>Ending Inventory $ 20,000</u>

Cost Of Goods Sold = $ 45,000

Suppose we write $ 20,000 as $ 25,000 we get

Opening Inventory $ 15000

Purchases $ 50,000

<u>Ending Inventory $ 25,000</u>

Cost Of Goods Sold = $ 40,000

So we see that Year 1 ending inventory is overstated and year 1 cost of goods sold is understated  by an amount of $ 5000

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Answer:

bureaucratic organizations

Explanation:

Bureaucratic organizations -

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They are the one with high efficiency with strict control and command .

hence ,

The correct term for the given statement is  bureaucratic organizations .

7 0
3 years ago
An individual who has left his or her native country and is unwilling or unable to return to it because of persecution or fear o
viva [34]

Answer: A Refugee

Explanation:

A Refugee is an individual who has left his native country and crossed into another country, due to conflict or war in their native land. In most cases, refugees are unable to return to their native country and would have to start life afresh in the new country.

5 0
3 years ago
Forrester Company is considering buying new equipment that would increase monthly fixed costs from $276,000 to $544,500 and woul
REY [17]

Answer:

The correct answer is E.

Explanation:

Giving the following information:

Forrester Company is considering buying new equipment that would increase monthly fixed costs from $276,000 to $544,500 and would decrease the current variable costs of $60 by $15 per unit. The selling price of $100 is not expected to change.

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 544,500/ [(100-45)/100]

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6 0
3 years ago
Read 2 more answers
At Medallion Industries, variable cost per unit is budgeted to be $8.00 and fixed cost per unit is budgeted to be $5.00 in a per
natka813 [3]

Answer:

Total cost= $60,800

Explanation:

Giving the following information:

For 4,000 units:

Unitary variable cost= $8

Unitary fixed cost= $5

<u>First, we need to calculate the total fixed cost:</u>

Total fixed cost= 5*4,000= $20,000

<u>Now, we can determine the total cost for 5,100 units:</u>

Total cost= 5,100*8 + 20,000

Total cost= $60,800

6 0
3 years ago
Rigney Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of
ANEK [815]

Answer:

Total estimated bad debts = $9,400

Explanation:

days outstanding     A/c Receivable    %        estimate

0-30                           $77,000              1           $770

31-60                          $46,000              4         $1,840

61-90                           $39,000              5        $1,950

91-120                          $23,000              8         $1,840

over 120                      $15,000               20       $3,000

Total                            200,000                          $9,400                      

4 0
3 years ago
Read 2 more answers
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