STATEMENT IMPACT OF INVENTORY ERRORS

STATEMENT IMPACT OF INVENTORY ERRORS - Inv EOP (100) CGS...

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STATEMENT IMPACT OF INVENTORY ERRORS A. Correct Information B. Incorrect Information - inventory error in ITALICS (1) Overstate Inventory– SOP ( 2) Understate Inventory - SOP (3) Overstate Inventory – EOP (4) Understate Inventory - EOP SUMMARY : CGS Gross Profit Net Income (1) Overstate Inventory– SOP Over Under Under (2) Understate Inventory – SOP Under Over Over (3) Overstate Inventory – EOP Under Over Over (4) Understate Inventory – EOP Over Under Under (5) Overstate Purchases Over Under Under (6) Understate Purchases Under Over Over Net Sales 1,000 Less: CGS Inv – SOP 200 Purchases 400
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Unformatted text preview: Inv EOP (100) CGS 500 Gross Profit 500 Less: Expenses 300 Net Income 200 Net Sales 1,000 Less: CGS Inv SOP 300 Purchases 400 Inv EOP (100) CGS 600 Gross Profit 400 Less: Expenses 300 Net Income 100 Net Sales 1,000 Less: CGS Inv SOP 100 Purchases 400 Inv EOP (100) CGS 400 Gross Profit 600 Less: Expenses 300 Net Income 300 Net Sales 1,000 Less: CGS Inv SOP 200 Purchases 400 Inv EOP (200 ) CGS 400 Gross Profit 600 Less: Expenses 300 Net Income 300 Net Sales 1,000 Less: CGS Inv SOP 200 Purchases 400 Inv EOP ( 0 ) CGS 600 Gross Profit 400 Less: Expenses 300 Net Income 100...
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This note was uploaded on 04/05/2012 for the course ACC 241 taught by Professor Jameslock during the Spring '12 term at Northern Virginia Community College.

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