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3 years ago

The following inventory valuation errors have been discovered for Knox Corporation:

Business

1 answer:

Whitepunk [10]3 years ago

7 0

Answer:

Income +/- inventory adjustment

2015: 138,000 - 23,000 = 115,000

2016: 254,000 + 61,000 = 315,000

2017: 168,000 + 17,000 = 185,000

Explanation:

Inventory Identity:

Beginning + Purchases = Ending + COGS

As the mistake is on the right side it compensates by the other component which is COGS

When the inventory is overstated this means COGS is understated.

We didn't record the cost of good sold thefore our gross profit is higher making the net income higher.

When the inventory is understated this means COGS is overstated.

We record more cost of goods sold thefore our gross profit is lower making the net income fewer as well.

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May, Inc. had the following transactions in 2019, its first year of operations: bullet Issued 20 comma 000 shares of common s

Liula [17]

Answer:

The total amount of paid-in capital is $552,000

Explanation:

The computation of the total amount of paid-in capital is shown below:

= Issue of common stock + issue of preferred stock

where,

Issue of common stock = Number of shares × issued price

= 20,000 shares × $18 per share

= $360,000

Issue of preferred stock = Number of shares × par value

= 1,200 shares × $160 per share

= $192,000

Now put these values to the above formula

So, the value would equal to

= $360,000 + $192,000

= $552,000

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3 years ago

When making decisions, managers often have to decide between doing what is beneficial for them in the short run, and doing what

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Answer: The correct answer is "ensure that long-term goals of the firm are aligned with the short-term goals of each individual within the firm.".

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3 years ago

bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 5,600 direct labo

Savatey [412]

Answer:

$84,000

Explanation:

The computation of August cash disbursement for manufacturing overhead is seen below;

Direct labor hour

5,600

Variable overhead per hour

$5.4

Variable manufacturing overhead

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Fixed manufacturing overhead

$69,440

Total manufacturing overhead

$99,680

Less: Depreciation

$15,680

Cash disbursement for manufacturing overhead

$84,000

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3 years ago

How managers plan significant investments in projects that have long term implications such as purchasing new equipment or intro

Andreas93 [3]

The answer is Capital Budgeting.

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3 years ago

Cost of goods sold is characterized by the following statements

melamori03 [73]

Answer:

The interpretation of the particular context is provided in the subsection below on clarification.

Explanation:

The cost of the products sold has become a reporting liability on either the cash flow statement.
The cost of the goods offered for sale includes the cost of materials expenditures and the time to prepare such a component for selling price.
The cost of the goods generated is measured using gross profit. Prices of the products sold are also known as selling costs.

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3 years ago