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Accounting
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9 Nov 2019

Which of the following costs would be classified as a directcost for a company that produces motorcycles?

A. Rent of manufacturing facility that produces motorcycles

B. Seats used in the motorcycles

C. Wages of motorcycle assembly workers

D. Both Seats used in the motorcycles and Wages of motorcycleassembly workers are correct.

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Tod Thiel
Tod ThielLv2
31 May 2019
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Effect of Errors in Physical Inventory Eclipse Motorcycle Shopsells motorcycles, ATVs, and other related supplies andaccessories. During the taking of its physical inventory onDecember 31, 2014, Eclipse Motorcycle Shop incorrectly counted itsinventory as $262,400 instead of the correct amount of $251,900.Enter all amounts as positive numbers. a. State the effect of theerror on the December 31, 2014, balance sheet of Eclipse MotorcycleShop. Balance Sheet Items Overstated / Understated AmountMerchandise Inventory $ Current Assets $ Total Assets $ Owner'sEquity $ b. State the effect of the error on the income statementof Eclipse Motorcycle Shop for the year ended December 31, 2014.Income Statement Items Overstated / Understated Amount Cost ofMerchandise Sold $ Gross Profit $ Net Income $ c. If uncorrected,what would be the effect of the error on the 2015 income statement?Income Statement Items Understated / Overstated Amount Cost ofMerchandise Sold $ Gross Profit $ Net Income $

Effect of Errors in Physical Inventory

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