Question
37. Inventory records for MOM Company revealed the following: Date Transaction Number of Units Unit Cost Mar. 1 Beginning inventory 200 $66.00 Mar. 6 Purchase
37. Inventory records for MOM Company revealed the following:
| Date | Transaction | Number of Units | Unit Cost |
| Mar. 1 | Beginning inventory | 200 | $66.00 |
| Mar. 6 | Purchase | 1,000 | $66.50 |
| Mar. 16 | Purchase | 1,000 | $66.80 |
| Mar. 23 | Purchase | 1,000 | $66.90 |
MOM sold 3,190 units of inventory during the month. Ending inventory assuming FIFO would be $______________
38. Inventory records for STC Company revealed the following:
| Date | Transaction | Number of Units | Unit Cost |
| Mar. 1 | Beginning inventory | 100 | $25.00 |
| Mar. 3 | Purchase | 500 | $25.50 |
| Mar. 23 | Purchase | 400 | $26.00 |
STC sold 980 units of inventory during the month. Ending inventory assuming Weighted Average would be $___________
Use the following to answer questions 39 40
MATCH For each of the following independent situations, fill in the blanks to indicate the effect of the error on each of the various financial statement items. Assume that each of the companies uses a periodic inventory system. Indicate:
(A) an understatement
(B) an overstatement or
(C) no effect, correct
|
|
| Balance Sheet | Income Statement | ||
|
| Error | Ending Inventory | Retained Earnings | Cost of Goods Sold | Net Income |
| 39. | Understated EI in year 1, affect on items in year 1. | a. | b. | c. | d. |
| 40. | Understated EI in year 1, affect on items in year 2. | a. | b. | c. | d. |
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