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Becky Shelton, a teacher at Kemp Middle School, is in charge of ordering the T-shirts to be sold for the school's annual fund-raising project. The T-shirts are printed with a special Kemp School logo. In some years, the supply of T-shirts has been insufficient to satisfy the number of sales orders. In other years, T-shirts have been left over. Excess T-shirts are normally donated to some charitable organization T-shirts cost the school $7 each and are normally sold for $14 each, Ms. Shelton has decided to order 830 shirts Required a. If the school receives actual sales orders for 760 shirts, what amount of profit will the school earn? What is the cost of waste due to excess inventory? b. If the school receives actual sales orders for 860 shirts, what amount of profit will the school earn? What amount of opportunity cost will the school incur? a Profit b Waste due to excess inventory Profit Opportunity cost Exercise 10-18A (Algo) Ethical Professional Practice LO 10-7 The CFO of the Walton Microscope Corporation intentionally misclassified a downstream transportation expense in the amount of $725,400 as a product cost in an accounting period when the company made 9,300 microscopes and sold 6,300 microscopes Walton rewards its officers with bonuses that are based on net earnings Required a. Indicate whether the elements on the financial statements (ie, assets, liabilities, stockholders' equity, revenue, expense, and net income) would be overstated or understated as a result of the misclassification of the downstream transportation expense. Determine the amount of the overstatement or understatement for each element. (If there is no effect select "Not affected" from the dropdown provided. Enter all answers os positive values.) Assets Overstated Llabilities Not affected Retained earnings overstated Revenue Not affected Expense Understated Net Income Overstated

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