Question

Save Chrystina Hjelm & | 02/21/20 1:44 PM Homework: 4.5 - Homework: My AccountingLab Homework 4 Score: 0 of 7 pts 13 of 15 (13 complete) HW Score: 81.9%, 81.9 of 100 pts S6-9 (similar to) Question Help Van Dyke Pool Supplies's merchandise inventory data for the year ended December 31, 2019. follow ::: (Click the icon to view the inventory data.) Read the requirements Requirement 1. Assume that the ending merchandise inventory was accidentally overstated by $1,000. What are the correct amounts for cost of goods sold and gross profit? Cost of goods sold in 2019 would be s Requirements cross 1. Assume that the ending merchandise inventory was accidentally overstated by $1,000. What are the correct amounts for cost of goods sold and gross profit? How would the inventory error affect Van Dyke Pool Supplies's cost of goods sold and gross profit for the year ended December 31, 2020, if the error is not corrected in 2019? Print Done Check Answer Clear All 3 remaining

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Answer 1

€ 200000 + 1,50/000-10000 Assume Given. Amounts (including over stated values Assume Opening Inventory - 3200,000 Purchases $1,50,000 Closing Inventory - $ 1,00,000 Sales - $ 3,00,000 Therefore Cost op Goods Sold = 900000 1 = $9,50,000 Gross profit - Sales - coas ...$3,00,000 - $9,50,000 ... _ $450,000 If closing Inventory was accidenlally- 00 then Impact on amounls of Cost of coods sold. and Gross__marging follows. 1 Good Cost of Goods sold was Increased by $1000 COAS = $ 2,51000 Conech. Cost of Goods Sold - $ 3,51000 2 Grofit Profit should be decreased by $_1000___ a Giross_Anfit = $ 49000 .. Correct amount of cross pofit $49000 y-was accidentally overstaled 2) If the error is not corrected in 2019 then Impact on Cost of Goods Sold and Gross | Profit in 2020 - Cost of Goods sold should be decrease by $ 1000 in 2020. Correct cost of Goods sold = 2 Gross Profit should be Increased by $1000_in 2020._ Scanned with CamScanner