Below is information relating to Not Right inca subudiary of a US publicly traded mandaclurer of murder mystery games. The company uses the tastin, first-out (LIFO) cont flow assumption Additional information on inventory during Year includes the following: Click the icon to view the additional information) Requirement For each of the independent scenarios (a) through (d) indicate in the following table the otect of the accounting oors on the books of Not Righting Specifically, Identity the amount and direction of over- or understatement of Inventory and income for Year and Year 2. It an account requires no adjustment indicate that the account is correct if an account is correct, are the amount coll. Do not enter 0 Yes Year A Art Amount income Med Art Next 90 Partly doudy More info Beginning-of-year finished goods inventory 80,000 units Units finished during Year 1 250,000 units End-of-year finished goods inventory 35,000 units Beginning-of-year work-in-process (in equivalent units*) 20,000 units Ending work-in-process (in equivalent units") 20,000 units ("For example, 10 units that are each 40% complete are equal to 4 equivalent units.) a. One of Not Right's products became obsolete and worthless during Year 1, but the inventory write-down did not occur until Year 2. The cost of this inventory was $82,000. b. In the Year 1 closing inventory count, employees improperly included 500 units of finished goods that had already been sold to customers. These units had a cost of Print Done More info b. In the Year 1 closing inventory count, employees improperly included 500 units of finished goods that had already been sold to customers. These units had a cost of $10,000 under LIFO. C. An invoice for $24,000 of material received and used in production arrived after the year-end. Neither the purchase nor the accounts payable was recorded. However, the amount of raw materials in ending inventory was correct based on the inventory count. d. In Year 1, Not Right incurred the following expenditures: Factory labour $ 900,000 Materials used in manufacturing 600,000 Variable overhead 200,000 Subtotal 1.700,000 More info Variable overhead 200,000 Subtotal 1,700,000 Transportation cost of raw materials 120,000 Factory depreciation 750,000 Salary of production vice-president 70,000 Salary of marketing vice-president 110,000 Advertising cost for new game 150,000 $ 2,900,000 Not Right's accountants debited only $1,700,000 into the inventory (work-in-process) account. The remainder was expensed as period costs. point(s) possible Resume later Submit quiz Below is information relating to Not Right Inea subsidiary of a US publicly traded manufacturer of murder mystery games. The company uses the last-an, first-out (LIFO) cost flow assumption. Additional information on inventory during Year 1 includes the following Click the icon to view the additional information) Requirement For each of the independent scenarios (a) through() indicate in the following table the effect of the accounting errors on the books of Not Right In Specifically, identity the amount and direction of over- or understatement of inventory and income for Year 1 and Year 2 an account requires no adjustment indicate that the account is correct" an account is correct, love the amount cell bank. Do not enter a 'O) Year 1 Year 2 Inventory Misstated Amount Income Misstated Amount Misstated? Amount Misistated Amd b Next Below is information relating to Not Right inca subudiary of a US publicly traded mandaclurer of murder mystery games. The company uses the tastin, first-out (LIFO) cont flow assumption Additional information on inventory during Year includes the following: Click the icon to view the additional information) Requirement For each of the independent scenarios (a) through (d) indicate in the following table the otect of the accounting oors on the books of Not Righting Specifically, Identity the amount and direction of over- or understatement of Inventory and income for Year and Year 2. It an account requires no adjustment indicate that the account is correct if an account is correct, are the amount coll. Do not enter 0 Yes Year A Art Amount income Med Art Next 90 Partly doudy More info Beginning-of-year finished goods inventory 80,000 units Units finished during Year 1 250,000 units End-of-year finished goods inventory 35,000 units Beginning-of-year work-in-process (in equivalent units*) 20,000 units Ending work-in-process (in equivalent units") 20,000 units ("For example, 10 units that are each 40% complete are equal to 4 equivalent units.) a. One of Not Right's products became obsolete and worthless during Year 1, but the inventory write-down did not occur until Year 2. The cost of this inventory was $82,000. b. In the Year 1 closing inventory count, employees improperly included 500 units of finished goods that had already been sold to customers. These units had a cost of Print Done More info b. In the Year 1 closing inventory count, employees improperly included 500 units of finished goods that had already been sold to customers. These units had a cost of $10,000 under LIFO. C. An invoice for $24,000 of material received and used in production arrived after the year-end. Neither the purchase nor the accounts payable was recorded. However, the amount of raw materials in ending inventory was correct based on the inventory count. d. In Year 1, Not Right incurred the following expenditures: Factory labour $ 900,000 Materials used in manufacturing 600,000 Variable overhead 200,000 Subtotal 1.700,000 More info Variable overhead 200,000 Subtotal 1,700,000 Transportation cost of raw materials 120,000 Factory depreciation 750,000 Salary of production vice-president 70,000 Salary of marketing vice-president 110,000 Advertising cost for new game 150,000 $ 2,900,000 Not Right's accountants debited only $1,700,000 into the inventory (work-in-process) account. The remainder was expensed as period costs. point(s) possible Resume later Submit quiz Below is information relating to Not Right Inea subsidiary of a US publicly traded manufacturer of murder mystery games. The company uses the last-an, first-out (LIFO) cost flow assumption. Additional information on inventory during Year 1 includes the following Click the icon to view the additional information) Requirement For each of the independent scenarios (a) through() indicate in the following table the effect of the accounting errors on the books of Not Right In Specifically, identity the amount and direction of over- or understatement of inventory and income for Year 1 and Year 2 an account requires no adjustment indicate that the account is correct" an account is correct, love the amount cell bank. Do not enter a 'O) Year 1 Year 2 Inventory Misstated Amount Income Misstated Amount Misstated? Amount Misistated Amd b Next