During Its December 31, 2017 Year-End Inventory Count, Jefferson Company

question 18

Multiple Choice

During its December 31, 2017 year-end inventory count, Jefferson Company failed to count items in transit to which it had legal title. As a result of this error, ending inventory was understated by $30,000. As a result of this error, 2017 cost of goods sold will be

• A) understated by $30,000.
• B) overstated by $30,000.
• C) correct.
• D) greater when weighted average cost is used.

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