User Account

All Pages

Compute the effect of this error on net income

Assignment Help Accounting Basics
Reference no: EM131765133

LaGreca Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, included product X. Relevant per-unit data for product X are as follows.

Estimated selling price$50
Cost40
Estimated selling costs14
Normal profit9

There were 1,000 units of product X on hand at December 31, 2017. Product X was incorrectly valued at $38 per unit for reporting purposes. All 1,000 units were sold in 2018.

Compute the effect of this error on net income for 2017 and the effect on net income for 2018, and indicate the direction of the misstatement for each year.

 

Reference no: EM131765133

Questions Cloud

Firm save annually in ordering-carrying costs by using eoq : Currently, the manager orders once a month. How much could the firm save annually in ordering and carrying costs by using EOQ?
Discuss the united states health care system : Explain The biggest problem with the United States health care system is the lack of access
Prepare a schedule with pretazx financial income : Life insurance expense on officers was $9000, Prepare a schedule with pretazx financial income in 2010 and ending with taxable income in 2010
Discuss the role of skepticism as a media user : Discuss the role of skepticism as a media user. What should you watch out for? List and explain resources that can help sort good information from bad.
Compute the effect of this error on net income : Compute the effect of this error on net income for 2017 and the effect on net income for 2018
Prepare the journal entry to record income tax expense : Prepare the journal entry to record income tax expense, deferred income taxes and income tax payable for 2010
About diversity matter in public administration profession : What does diversity mean for you? Why does learning about diversity matter in the public administration profession?
Compute the predetermined overhead rate for each activity : Using the activity rates calculated in requirement a and the actual cost driver activity levels shown for March
Calculate the npv of crane t : Raycom, Inc. needs a new overhead crane and two alternatives are available. Crane T costs $1.35 million and will produce cost savings of $765,000.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd