The Ending Inventory for Wyeth Company Was Overstated by $6,000

question 32

Multiple Choice

The ending inventory for Wyeth Company was overstated by $6,000 in 2014.The overstatement will cause Wyeth Company's

• A) retained earnings to be understated on the 2014 balance sheet.
• B) 2015 balance sheet not to be misstated
• C) cost of goods sold to be overstated on the 2014 income statement.
• D) cost of goods sold to be understated on the 2015 income statement.

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Definitions:

Private-label

Products that are manufactured by one company for sale under another company's brand, typically a retailer's brand.

Repositioned

The strategic process of changing the market position of a product, brand, or company, often involving adjustments in marketing, messaging, or target audience.

Oval Packaging

A type of product packaging that has an oval shape, often used to differentiate products on shelves and to give a distinctive aesthetic.

Shelf Space

Refers to the amount of area or space available on retail shelves allocated to display merchandise or products.