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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Definitions:

Performance

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Korean-American Preschool

An educational establishment aimed at early childhood education specifically for Korean-American children, focusing on both American and Korean cultures.

Independent Thinking

The ability to analyze and evaluate information or situations independently, without undue influence from others.

Socialization

Development of habits, skills, values, and motives shared by responsible, productive members of a society.