Below is information relating to Whoops Inc

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Below is information relating to Whoops Inc., a subsidiary of a U.S. publicly traded manufacturer of murder mystery games. The company uses the last-in, first-out (LIFO) cost flow assumption. Additional information on inventory during Year 1 includes the following: 10(Click the icon to view the additional information.) Requirement For each of the independent scenarios (a) through (d), indicate in the following table the effect of the accounting errors on the books of Whoops Inc. Specifically, identify the amount and direction of over- or understatement of inventory and income for Year 1 and Year 2. If an account requires no adjustment, indicate that the account is "correct." (If an account is correct, leave the amount cell blank. Do not enter a "0".) Year 1 Year 2 Income Income Inventory Misstated? Amount Inventory Misstated? Amount Misstated? Amount Misstated? Amount Beginning-of-year finished goods inventory 70,000 units Units finished during Year 1 320,000 units End-of-year finished goods inventory 10,000 units Beginning-of-year work-in-process (in equivalent units*) 5,000 units Ending work-in-process in equivalent units*) 5,000 units (*For example, 10 units that are each 40% complete are equal to 4 equivalent units.) a. b ?. d. a. One of Whoops' products became obsolete and worthless during Year 1, but the inventory write-down did not occur until Year 2. The cost of this inventory was $71,000. b. In the Year 1 closing inventory count, employees improperly included 100 units of finished goods that had already been sold to customers. These units had a cost of $2,000 under LIFO. c. An invoice for $22,000 of material received and used in production arrived after the year-end. Neither the purchase nor the accounts payable was recorded. However, the amount of raw materials in ending inventory was correct based on the inventory count. d. In Year 1, Whoops incurred the following expenditures: Factory labour $ 1,600,000 Materials used in manufacturing 450,000 Variable overhead 150,000 Subtotal 2,200,000 Transportation cost raw materials Factory depreciation Salary of production vice-president Salary of marketing vice-president 180,000 1,100,000 105,000 90,000 160,000 Advertising cost for new game $ 3,835,000 Whoops' accountants debited only $2,200,000 into the inventory (work-in-process) account. The remainder was expensed as period costs.