37. Inventory records for MOM Company revealed the following Number Date Mar. 1 Mar. 6 Mar. 16 Mar. 23 Transaction Beginning inventory Purchase Purchase Purchase Unit Cost $70.00 $70.20 $71.00 1.000 1,000 1,000 $71.10 MOM sold 3.300 units of inventory during the month Ending inventory assuming UFO would be s 38. Inventory records for STC Company revealed the following: Number of Units Date Mar. 1 Mar. 3 Mar. 23 Transaction Beginning inventory Purchase Purchase Unit cost $25.00 $25.25 $26.00 800 150 STC sold 975 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 Error Balance Sheet Income Statement Ending Retained Cost of Net Income Inventory Earnings Goods Sold a. A b. c. 3 d. A a. b. c. d B 39. Understated El in year 1, affect on items in year 1. 40. Understated El in year 1, affect on items in year 2. Chapter 6 Page 6-5