Answer:
The correct answer is A
Explanation:
Change in accounting principle is the term which is defined as when the business choose among the GAAP (generally accepted accounting principles) or changes the method with which the principle is used. These principles impact the way or the method used, and then estimates the particular recalculation.
For example, company using the different method of depreciation after the 1st year of operations pr switching among FIFO to LIFO methods of inventory valuation.
So, in this case, the company switch or change the completed contract method to the percentage of completion accounting method. Therefore, the company uses the change in the accounting principle.
In the aggregate expenditures model of the economy, a downward shift in aggregate expenditures can be caused by a decrease in <span>government spending or an increase in taxes.</span>
Answer:
С. $1,350.00 Favorable
Explanation:
The computation of the material price variance is shown below:
= Actual Quantity × (Standard Price - Actual Price)
= 9,000 × ($19.15 - $171,000 ÷ 9,000)
= 9,000 × ($19.15 - $19)
= 9,000 × $0.15
= $1,350 favorable
The actual price is computed below:
= Actual cost of materials purchased ÷ Actual materials purchased
= $171,000 ÷ 9,000
= $19
Answer:
See below
Explanation:
With regard to the above information,
1. Corrected cost of goods sold is computed as
= Cost of goods sold + Overstated ending inventories 2019 - overstated ending inventories 2020
= $1,322,900 + $106,470 - $36,820
= $1,253,250
2. Corrected 12/31/2020 retained earnings is computed as
= Retained earnings DEC 2020 - overstated ending inventories 2020
= $4,854,000 - $36,820
= $4,817,180
