The 2019 net income of Wary Industries was determined without the following additional information. On December 27, 2019, merchandise costing $6,000 was shipped f.o.b. shipping point to a customer. The invoice sent by Wary on December 27, but the merchandise did not arrive at the customers until January 3. This inventory was not included in the December 31, 2019 physical inventory count. Also on December 27, 2019, merchandise costing $6,000 was shipped f.o.b. shipping point from a supplier. The invoice had been received by Wary by December 31, but the merchandise did not arrive until January 4. This inventory was not included in the December 31, 2019 physical inventory count. The NRV of 100 units of inventory item B1904 was $40 per unit. The cost was $35 The NRV of 100 units of inventory item C2750 was $47 per unit. The cost was $100 Year: Net income per books 2019 $80,000 2020 $130,000 Year: Net income per books 2019 $80,000 2020 $130,000 Instructions: a. Now that this additional information has come to light, calculate the corrected amount of net income for 2019 and 2020. Clearly show your calculations. The year 2019 was Wary's first year of business. b. Because costs can fluctuate wiklly, the owner of the company is thinking that using the LIFO method to account for inventory might be the best way to go. Explain to him Iwo reasons why LIFO is not an option (One of the reasons might be by suggesting an alternative to address the issue ol fluctuating prices) C Also in 2020, Wary purchased a trailer of flower pots for a total of $14,200 as an opportunity buy the pots come in three sizes, 1,000 pots in small which were sold for $15 each, 600 pot in medium which were sold for 524 each and 400 pos large which were sold for $33 each. They sold our quickly at these prices Now Wary has an opportunity to buy another shipment of only 2 medium pots for $2.700 and they are wondering if they ele geting the same in the relative sales value what was the cost Deshiramente com a The 2019 net income of Wary Industries was determined without the following additional information. On December 27, 2019, merchandise costing $6,000 was shipped f.o.b. shipping point to a customer. The invoice sent by Wary on December 27, but the merchandise did not arrive at the customers until January 3. This inventory was not included in the December 31, 2019 physical inventory count. Also on December 27, 2019, merchandise costing $6,000 was shipped f.o.b. shipping point from a supplier. The invoice had been received by Wary by December 31, but the merchandise did not arrive until January 4. This inventory was not included in the December 31, 2019 physical inventory count. The NRV of 100 units of inventory item B1904 was $40 per unit. The cost was $35 The NRV of 100 units of inventory item C2750 was $47 per unit. The cost was $100 Year: Net income per books 2019 $80,000 2020 $130,000 Year: Net income per books 2019 $80,000 2020 $130,000 Instructions: a. Now that this additional information has come to light, calculate the corrected amount of net income for 2019 and 2020. Clearly show your calculations. The year 2019 was Wary's first year of business. b. Because costs can fluctuate wiklly, the owner of the company is thinking that using the LIFO method to account for inventory might be the best way to go. Explain to him Iwo reasons why LIFO is not an option (One of the reasons might be by suggesting an alternative to address the issue ol fluctuating prices) C Also in 2020, Wary purchased a trailer of flower pots for a total of $14,200 as an opportunity buy the pots come in three sizes, 1,000 pots in small which were sold for $15 each, 600 pot in medium which were sold for 524 each and 400 pos large which were sold for $33 each. They sold our quickly at these prices Now Wary has an opportunity to buy another shipment of only 2 medium pots for $2.700 and they are wondering if they ele geting the same in the relative sales value what was the cost Deshiramente com a
