All categories

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.

You might be interested in

Cost estimation, incremental unit-time learning model. Assume the same information for the Pacific Boat Company as in Problem 10

tiny-mole [99]

Answer:

Answer for the question :

"Cost estimation, incremental unit-time learning model. Assume the same information for the Pacific Boat Company as in Problem 10-40 with one exception. This exception is that Pacific Boat uses a 90% incremental unit-time learning model as a basis for predicting direct manufacturing labor-hours in its assembling operations. (A 90% learning curve means b = –0.152004.)a. Prepare a prediction of the total costs for producing the six PT109s for the Navy. b. If you solved requirement 1 of Problem 10-35, compare your cost prediction there with the one you made here. Why are the predictions different? How should Blue Seas decide which model it should use?"

is explained in the attachment.

Explanation:

Download pdf

5 0

4 years ago

I am buying a firm with an expected perpetual cash flow of $1,000 but am unsure of its risk. If I think the beta of the firm is

Nitella [24]

Answer:

$15,000

Explanation:

Value of a perpetuality = cash flow / r

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

4 + 0 (10 - 4) = 4

1,000/ 0.04 = 25,000

4 + 1 (10 - 4) = 10

1000 / 0.1 = 10,000

25,000 - 10,000 = 15,000

8 0

3 years ago

If the consumer price index was 166.6 in one year and 172.2 in the next year, then the rate of inflation from one year to the ne

Hatshy [7]

The formula to find the inflation or deflation rate is (P2-P1)/P1 x 100%, therefore you get 172.2-166.6 divided by 166.6, giving you the inflation rate of 3.36 rounded to two decimal places.

7 0

4 years ago

This activity is important because marketing students should be aware of career opportunities in sales, how sales people create

never [62]

Answer:

Sales Careers and Examples

Example Career

2. Channel Sales Manager (CSM) Sales Management and Support

4. Route Sales Representative Order-Takers

8. The Key Account Manager Missionary Salespeople

Explanation:

Fives Sales Job Categories:

(1) New business salesperson identifies prospects and sells to them.

(2) Order-taker fulfills orders without trying to acquire new ones.

(3) Missionary salespeople do not make actual sales but initiate the process with decision-makers.

(4) Sales management and support render management and support services to salespeople.

(5) Others include salespeople who do not fall into the above categories.

8 0

3 years ago

Mogul Company ships merchandise to Ski Outfit in a consignment arrangement. The arrangement specifies that Ski Outfit will attem

Dafna11 [192]

Answer:

Mogul will report Inventory of $26000

Explanation:

The consignment accounting states that any inventory sent on consignment by the consignor to the consignee belongs to the consignor until it is sold by the consignee. Mogu; company sent inventory costing 110000 and out of this only 84000 is sold. The remaining inventory still belongs to the consignor and the amount of this inventory is 110000 - 84000 = $26000

7 0

4 years ago