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    Accounting Cost-to-Cost Completion

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    Problem 1
    Kingston company reported the following net income amounts:
    2002 $52,000
    2003 $38,000
    2004 $66,000

    In 2005, the company discovered errors that been made in computing the ending inventories for 2002
    and 2003, as follows:
    2002 ending inventory understated by $4,000
    2003 ending inventory understated by $8,000

    Compute the correct net incomes for (1) 2002, and (2) 2003, and (3) 2004.

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    https://brainmass.com/business/accounting/accounting-cost-cost-completion-154968

    Solution Summary

    This solution shows step-by-step calculations to determine the correct net incomes for 2002, 2003 and 2004 using actual cost, estimated costs, billings on contracts, and collections on contract.

    $2.19

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