1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
poizon [28]
3 years ago
10

The following two errors were made in the physical inventory counts: 1. 2012 ending inventory was overstated by $33,000. 2. 2013

ending inventory was understated by $28,000. Compute the correct cost of goods sold for both 2012 and 2013.
Business
1 answer:
timofeeve [1]3 years ago
3 0

Answer:

2013: $490,000   2012: $561,000

Question:

Errors in inventory count the following information was taken from the record of Spencer Enterprises

                                                                    <u> 2013         </u>           <u>2012         </u>

Beginning Inventory                                    $63,000             $83,000

Cost of goods purchased                          <u> $548,000</u>           <u>$508,000</u>

Cost of goods available for sale                $611,000             $591,000

Ending inventory                                        <u> $93,000 </u>            <u>$63,000</u>

Cost of goods sold                                     <u> $518,000</u>           <u>$528,000</u>

The following two errors were made in the physical inventory counts:

1. 2012 ending inventory was overstated by $33,000

2. 2013 ending inventory was understated by $28,000.

Compute the correct cost of goods sold for both 2012 and 2013.

Explanation:

Computation of cost of goods sold for the year 2016 and 2015

Particulars                                                    <u>2013    </u>       <u>2012          </u>

Beginning inventory                                    $63,000   $83,000

Cost of goods purchased                            <u>$548,000</u>   <u>$508,000</u>

Cost of goods available for sale                    $611,000   $591,000

Ending inventory <em>(corrected)</em>                          <u> $121,000</u>   <u>$30,000</u>

Cost of goods sold <em>(corrected) </em>                       <u>$490,000</u>   <u>$561,000</u>.

<u>note:</u>

<em>In 2013 new ending inventory = $93,000 + $28,000 = $121,000</em>

<em>In 2012 new ending inventory = $63,000 - $33,000 = $30,000</em>

<em>Beginning inventory + Cost of goods purchased = Cost of goods available for sale</em>

<em>Cost of goods available for sale - Ending inventory = Cost of goods sold</em>

You might be interested in
Homer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annu
kotegsom [21]

Answer:

$165,000

Explanation:

The computation of the annual net cash flow is shown below:

But before that first we have to find the depreciation expense which is

= (Initial cost - Salvage Value) ÷  estimated life

= ($400,000 - $75,000) ÷ 5 years

= $65,000

Now the annual net cash flow is

= Depreciation expense + Net Income

= $65,000 + $100,000

= $165,000

We simply added the depreciation expense and the net income so that the annual net cash flow could come

4 0
2 years ago
Craig's collected $15,000 from customers for games played in july. craig's sold bowling merchandise inventory from its pro shop
tekilochka [14]

Answer:

cash 15,000 debit

  account receivables 15,000 credit

cash  3,000 debit

A/R    5,000 debit

  service revenue 8,000 credit

COGS  6,800 debit

   Merchandise   6,800 credit

Cash  4,000 debit

 A/R               4,000 credit

Cash   2,500 debit

  *unearned revenue   2,500 credit

**utilties payable   800 debit

       cash                   800 credit

salaries expense 3,500 debit

      cash                      3,500 debit

***prepaid expene        375  debit

prepaid insurance   1,125  debit

     cash                             1,500 credit

repairs expense      700 debit

      cash                           700 credit

utilities expense      900 debit

   utilities payable            900 credit

Explanation:

We will record following the debit = credit rule

* It will be considered unearned revenue as we didn'0t perform the services we have the obligation to do so therefore, it is a liability.

**as the expense was recorded previously a payable was created to recognize the obligation to pay our utilities. Therefore, we write-off the payable

*** 1,500 is the full contract value for 4 months:

1,500 / 4 = 375 per month

one most is declared as expense and the remainder as prepaid.

7 0
3 years ago
Which of the following is considered a constructive delivery of a gift?
Hoochie [10]

Answer:

A) giving the key to a safe-deposit box where the gift is kept

Explanation:

  • A Constructive delivery possession is that acquisition when here a symbolic transfer of property. The constructive distribution of the possession is basically a right that the property is not actually managed
  • But the donor has done something to convey the possession, but the property is of such a nature that physical possession is then not possible, the creative possession of the property is sufficient to carry out the act of gift.
7 0
3 years ago
An internet company gives their old computer system to the computer science
Elanso [62]

Answer:

Explanation:

The formula for GDP is

GDP = C + I + G + NX

C = consumption

I  = Investment by business and household purchases by individuals

G = Government  Expenditures

NX = foreign trade.

The first thing you can do is knock out foreign trade.

I think you can dispense with Government expenditures as well all though a school is an arm of government.

I think investment is what you have to look at carefully because it does include charitable organizations.  We'll come back to this.

Consumption is what it sounds like it sounds.

You can't answer this in any other way than to know how the company writes it off. It is an asset that goes from some value to 0. It no longer exists on their books. So it decreases their assets. It is balanced on their books by calling it an expense I think and that further has impact on their books.

So they are decreasing their value (albeit by a small amount -- they've already bought new computers).

I'm not sure about this, but I think what has happened is that the GDP is going to go down. Their investment has decreased by being written off.

8 0
2 years ago
Which central tendency is most suitable for measuring average rate growth ​
ValentinkaMS [17]

Answer:

hey mate your answer is here

4 0
3 years ago
Other questions:
  • The Second Bank of the United States was controlled by __________.
    5·2 answers
  • When is outsourcing NOT beneficial?a) when internal control over a particular activity is deemed essential b) when it improves o
    15·1 answer
  • As of December 31, 2017, Armani Company’s financial records show the following items and amounts. Cash $ 10,000 Accounts receiva
    8·1 answer
  • Advertising refers to any paid form of personal communication about an organization, product, service, or idea by an identified
    13·1 answer
  • Jon recently stopped a conflict with his girlfriend, Ana, and said to her, "You don't know how to have a disagreement without lo
    7·1 answer
  • Although ZipCar has some routine operating tasks, its rules and regulations are, for the most part, not strict. ZipCar's decisio
    6·1 answer
  • When someone takes out a mortgage loan to buy a house, the mortgage lender can take possession of the house and sell it if the b
    6·1 answer
  • Larry estimates that the costs of insurance, license, and depreciation to operate his car total $320 per month and that the gas,
    6·1 answer
  • What is the study of business​
    11·2 answers
  • The model on the right looks bumpy, but when you break a large salt crystal in two, the edges of the split often look straight a
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!