All categories

3 years ago

Hudson, Inc. is a calendar-year corporation. Its financial statements for the years 2018 and 2017 contained errors as follows:

Business

1 answer:

Ulleksa [173]3 years ago

4 0

Answer:

A. Option (d) is correct.

B. Option (a) is correct.

Explanation:

Given that,

Ending inventory(2018) = $9,000

Ending inventory(2017) = $24,000

Depreciation expense(2018) = $6,000

Depreciation expense(2017) = $18,000

A. 2018 income before taxes be overstated or understated:

= Ending inventory + Depreciation expense(2018)

= $9,000 + $6,000

= $15,000 overstated

B. Retained earnings at December 31, 2018 be overstated or understated:

= Depreciation Expense for 2017 - Depreciation Expense for 2018 - Ending inventory

= $18,000 - $6,000 - $9,000

= $3,000 understated

You might be interested in

Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the c

puteri [66]

Answer:The product margin for product M5 is $7,385

Explanation:

To calculate the product margin for product M5,

Processing 3,870 ÷ 9,000

= 0.43 per MH

Supervising 25,000 ÷ 1,000

= $25 per batch

To calculate the overhead cost for product M5

Processing 0.43 per MH × 500

= $215

Supervising $25 per batch × 500 batches

= $12,500

Total = $12,500 + $215

= $12,715

To calculate the product margin for product M5 under activity based costing

Sales. 95,400

Less:

Direct materials 32,500

Direct Labour 42,800

----------------

Prime Cost. 75,300

Add: Overhead 12,715

----------------

Total Cost of production. 88,015

-----------------

Product Margin. 7,385

------------------

4 0

4 years ago

One of the disadvantages of using electronic money is it is possible to lose track of one's budget.

pshichka [43]

the right answer is TRUE, i got it wrong for putting it as false

5 0

4 years ago

On January 1, a company agrees to pay $20,000 in three years. If the annual interest rate is 10%, determine how much cash the co

Step2247 [10]

Answer:

Amount borrow P = $15,026.296

Explanation:

Given:

Amount pay A = $20,000

Number of year n = 3

Rate r = 10% = 0.10

Find:

Amount borrow P

Computation:

A = P[1+r]ⁿ

20,000 = P[1+r]³

20,000 = P[1+0.10]³

20,000 = P[1.10]³

20,000 = P[1.331]

Amount borrow P = $15,026.296

5 0

3 years ago

Finland Inc has the following Accounts Receivable Aging on March 31 Aging BucketCurrent1-90 days91-180 days181-365 days366 days

NISA [10]

Answer:

$32,250

Explanation:

Aging Bucket Amount Outstanding

Current 300,000

1-90 days 180,000

91-180 days 100,000

181-365 days 50,000

366+ days 15,000

Total $645,000

Total accounts receivable at the end of March = $645,000

Percentage uncollectible = 5%

Required reserve at the end of March = Total accounts receivable at the end of March * Percentage uncollectible

Required reserve at the end of March = $645,000*5%

Required reserve at the end of March = $32,250

5 0

3 years ago

Assume the sales budget for April and May is 47,000 units and 49,000 units, respectively. The production budget for the same two

NARA [144]

Answer:

Direct material cost= $372,120

Explanation:

To calculate the purchases of direct material for April, we need to use the following formula:

Purchases= production + desired ending inventory - beginning inventory

Production= 44,000*3= 132,000 pounds

Desired ending inventory= (45,000*3)*0.3= 40,500 pounds

Beginning inventory= (132,000*0.3)= 39,600 pounds

Purchases= 132,000 + 40,500 - 39,600

Purchases= 132,900 pounds

Direct material cost= 132,900*2.8= $372,120

3 0

3 years ago