eBook Caktor Print Item Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 2008, Fonda Motorcycle Shop incorrectly counted its inventory as $392,450 instead the correct amount of $376,750. Enter all amounts as positive numbers. a. State the effect of the error on the December 31, 2018, balance sheet of Fonda Motorcycle Shop Balance Sheet Items Overstated/Understated Amount Merchandise Inventory Current Assets Total Assets Owner's Equity b. State the effect of the error on the income statement of Fonda Motorcycle Shop for the year ended December 31, 20Y8. Income Statement Items Overstated/Understated Amount Cost of Merchandise Sold Gross Profit Net Income C. If uncorrected, what would be the effect of the error on the 2049 income statement? Understated/Overstated Income Statement Items Amount Cost of Merchandise Sold Gross Profit Net Income Previous Check My Work 2 more Check My Work uses remaining Emal structor Save and Submit Assignment for Grad eBook Show Me How Calculator Print Item Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory 30 units $110 Mar. 10 Purchase 70 units $122 30 units @ $126 Aug. 30 Purchase Dec. 12 Purchase 70 units $128 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar. Cost of Merchandise Inventory and Cost of Merchandise Sold Inventory Method Merchandise Inventory Merchandise Sold First-in, first-out (FIFO) Last-in, first-out (LIFO) Weighted average cost Previous Check My Work 2 more Check My Work uses remaining Email Instructor Save and Exit Submit Assig SHOW Calculator Weighted Average Cost Flow Method Under Perpetual Inventory System Print Item The following units of a particular item were available for sale during the calendar year: Jan. 1 Inventory 30,000 units at $30.00 Mar. 18 Sale 24,000 units May 2 Purchase 54,000 units at $31.00 Aug. 9 Sale 45,000 units 21,000 units at $32.10 Oct. 20 Purchase The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of merchandise sold for each sale and the inventory balance after each sale Present the data in the form illustrated in Exhibit 5. Round unit cost to two decimal places, if necessary Schedule of Cost of Merchandise Sold Weighted Average Cost Flow Method Cast of Merchandise Sold Quantity Unit Cost Total Cost Inventory Purchases Unit Cost Date Quantity Total Cost Quantity Unit Cost TO Jan. 1 Mar. 18 May 2 Aug. 9 Oct. 20 Dec. 31 Balances Previous Next Check My Work 2 more Check My Work uses remaining Email Instructor Save and Et Submit Assignment for Gradi
