For each of the following inventory errors occurring in 2018, determine the effect of the error on 2018's cost of goods sold, net income, and retained earnings using understated (u), overstated (o), or no effect (ne). assume that the error is not discovered until 2019 and that a periodic inventory system is used. ignore income taxes. cost of net retained goods sold income earnings 1. overstatement of ending inventory 2. overstatement of purchases 3. understatement of beginning inventory 4.freight-in charges are understated 5. understatement of ending inventory 6. understatement of purchases 7. overstatement of beginning inventory 8. understatement of purchases plus understatement of ending inventory by the same amount

Bandar industries berhad of malaysia manufactures sporting equipment. one of the company’s products, a football helmet for the north american market, requires a special plastic. during the quarter ending june 30, the company manufactured 35,000 helmets, using 22,500 kilograms of plastic. the plastic cost the company $171,000. according to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram. 1. what is the standard quantity of kilograms of plastic (sq) that is allowed to make 35,000 helmets? 2. what is the standard materials cost allowed (sq x sp) to make 35,000 helmets? 3. what is the materials spending variance? 4. what is the materials price variance and the materials quantity variance?