Albacore Sailboats Manufactures Small Sailing Dinghies

question 15

Essay

Albacore Sailboats manufactures small sailing dinghies. In 2022, the company's accountant recorded the following costs into the inventory account:

The company had no work in process at the end of both 2021 and 2022. Finished goods at the end of 2021 amounted to 6,000 sailboats at $300/boat. Production was 50,000 sailboats and 4,000 boats remained in inventory at December 31, 2022. The company uses a periodic inventory system and the FIFO cost flow assumption.
Required:
a. Of the $15,098,000, how much should have been capitalized into inventories?
b. Compute the ending value of inventory and the cost of goods sold for 2022.
c. If the error in inventory costing had not been corrected as per part (a), by how much would inventory be overstated at the end of 2022?
d. Record the journal entry to correct the error in inventory costing.

Understand the concept of followership and its importance in the leadership process.

Understand the basic concepts and different theories of leadership, including trait, behavioral, and contingency theories.

Identify the characteristics and effectiveness of various leadership styles such as laissez-faire, democratic, and autocratic.

Recognize the importance of situational factors in determining the appropriateness of a leadership style.

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Definitions:

Cultural Background

Refers to the social, ethnic, religious, and cultural factors influencing an individual’s identity, perceptions, and behaviors.

Two-Factor Theory

A psychological theory suggesting that employee satisfaction is influenced by motivation factors that enhance job satisfaction, and hygiene factors that can prevent dissatisfaction.

Hygiene Factors

Sources of job satisfaction such as salary, status, and security

Equity Theory

Theory that holds that motivation is based on our perception of fairness in comparison with others.