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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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2 years ago

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Answer:

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Explanation:

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3 years ago

Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4.9 pound

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Answer:

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2 years ago

1. In what way do organization charts create a picture of an organization?

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Answer:

In a structural way

Explanation:

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3 years ago

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Answer:

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- Product changes decrease.

- Design compromises are instituted.

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- Optimum capacity may be achieved

- Manufacturing process stabilizes

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3 years ago