Ana,the accountant,is reviewing the work of a subordinate.Ana's boss tells her to find as many errors as she can or,if there are no errors,certify that the work is done correctly.All information given relates to the month of January,2011.

Additional Information:
a.The beginning inventory was 200 units,at cost of $200 each.Purchases on January 3 were 100 units at a cost of $202 each and purchases on January 30 were 100 units at a cost of $205 each.
b.The company sold 150 units during the month for $400 each.
c.The company uses the weighted average cost flow method and a periodic inventory system.
Required: Prepare a corrected income statement for the month.

Question

Ana,the accountant,is reviewing the work of a subordinate.Ana's boss tells her to find as many errors as she can or,if there are no errors,certify that the work is done correctly.All information given relates to the month of January,2011.

Additional Information:
a.The beginning inventory was 200 units,at cost of $200 each.Purchases on January 3 were 100 units at a cost of $202 each and purchases on January 30 were 100 units at a cost of $205 each.
b.The company sold 150 units during the month for $400 each.
c.The company uses the weighted average cost flow method and a periodic inventory system.
Required: Prepare a corrected income statement for the month.

Quizplus · Accepted Answer

The Answer of Ana,the accountant,is reviewing the work of a subordinate.Ana's boss tells her to find as many errors as she can or,if there are no errors,certify that the work is done correctly.All information given relates to the month of January,2011.

Additional Information:
a.The beginning inventory was 200 units,at cost of $200 each.Purchases on January 3 were 100 units at a cost of $202 each and purchases on January 30 were 100 units at a cost of $205 each.
b.The company sold 150 units during the month for $400 each.
c.The company uses the weighted average cost flow method and a periodic inventory system.
Required: Prepare a corrected income statement for the month.

Ana,the Accountant,is Reviewing the Work of a Subordinate