Question

What is the cumulative effect of the inventory error on total gross profit for the 2 years? (If answer is zero please enter 0Sandra Company reported these income statement data for a 2-year period. 2022 2021 Sales $245,000 $205,800 Beginning inventorPrepare correct income statement data for the 2 years. 2021 2022 Sales $ 205800 $ 245000 Operating Expenses Beginning Invento

0 0
Add a comment Improve this question Transcribed image text
✔ Recommended Answer
Answer #1

2021 2022

Sales. 205800. 245000

COGS

(op.inventory+ purchase- cl. Inventory) 163660 184240

2021(29400+169540-35280)

2022 (35280+ 197960- 49000)

gross profit. 42140. 60760

Total gross profit for 2 years =$ 42120+60760 =$ 102900 ( after change)

Total gross profit for 2 years =$ 56840+ 46060 =$ 102900

so no effect

if you have any doubt please write in comment section and do not forget to click like button.

Add a comment
Know the answer?
Add Answer to:
What is the cumulative effect of the inventory error on total gross profit for the 2...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • Sandra Company reported these income statement data for a 2-year period. 2022 2021 Sales $245,000 $205,800...

    Sandra Company reported these income statement data for a 2-year period. 2022 2021 Sales $245,000 $205,800 Beginning inventory 39,200 29,400 197,960 169,540 Cost of goods purchased Cost of goods available for sale 237,160 198,940 Ending inventory 49,000 39,200 Cost of goods sold 188,160 159,740 Gross profit $56,840 $46,060 Sandra uses a periodic inventory system. The inventories at January 1, 2021 and December 31, 2022, are correct. However, the ending inventory at December 31, 2021 is overstated by $3,920. Prepare correct...

  • Keep getting second entry wrong, don't know what it could be! Prepare correct income statement data...

    Keep getting second entry wrong, don't know what it could be! Prepare correct income statement data for the 2 years. 2021 2022 Sales $ 205800 $ 245000 Sales Beginning Inventory Begining Inventory 29400 2900 35280 35280 Cost of Goods Purchased 169540 197960 Cost of Goods Available for Sale 198940 233240 Cost of Goods available for Sale $ 0 198940 3 5280 233240 | 49000 Ending Inventory 35280 i Cost of Goods Sold 163660 184240 i Gross Profit 42140 60760

  • Blue Spruce Corp. reported these income statement data for a 2 year period 2022 2021 Sales...

    Blue Spruce Corp. reported these income statement data for a 2 year period 2022 2021 Sales revenue Beginning inventory Cost of goods purchased Cost of goods available for sale Less: Ending inventory Cost of goods sold Gross profit $256,300 $221.480 37.000 33.940 202.250 162.350 239.250 196.290 58.370 37.000 180.880 159.290 $75.420 $62.190 Blue Spruce Corp. uses a periodic inventory system. The inventories at January 1, 2021, and December 31, 2022, are correct. However, the ending inventory at December 31, 2021,...

  • Maria Company reported these income statement data for a 2-year period. Sales 2022 2021 $305,000 $256,200...

    Maria Company reported these income statement data for a 2-year period. Sales 2022 2021 $305,000 $256,200 48.800 36.600 246,440 211,060 Beginning inventory Cost of goods purchased Cost of goods available for sale 295,240 247,660 Ending inventory Cost of goods sold 61,000 234,240 $70,760 48,800 198.860 $57,340 Gross profit Maria uses a periodic inventory system. The inventories at January 1, 2021 and December 31, 2022, are correct. However, the ending inventory at December 31, 2021 is overstated by $4.880. Prepare correct...

  • Angela Company reported these income statement data for a 2-year period. 2022 2021 $265,000 $222,600 Sales Beginning in...

    Angela Company reported these income statement data for a 2-year period. 2022 2021 $265,000 $222,600 Sales Beginning inventory 42,400 31,800 Cost of goods purchased 214,120 183,380 Cost of goods available for sale 256,520 215,180 Ending inventory 53,000 42,400 Cost of goods sold 172,780 203,520 Gross profit $61,480 $49,820 Angela uses a periodic inventory system. The inventories at January 1, 2021 and December 31, 2022, are correct. However, the ending inventory at December 31, 2021 is overstated by $4,240. Prepare correct...

  • The last step in using the gross profit method to estimate ending inventory is to: O...

    The last step in using the gross profit method to estimate ending inventory is to: O A. estimate the cost of goods sold. O B. estimate the beginning inventory O C. calculate the cost of goods available for sale. OD. estimate the ending inventory.

  • E6A-26 Comparing ending merchandise inventory, cost of goods sold, and gross profit using the periodic inventory...

    E6A-26 Comparing ending merchandise inventory, cost of goods sold, and gross profit using the periodic inventory system-FIFO, LIFO, and weighted-average methods Assume that Jump Coffee Shop completed the following periodic inventory trans actions for a line of merchandise inventory: g Objective 7 Appendix 6A 2. COGS $513 53A G03 Jun. 1 Beginning merchandise inventory 17 units @ $ 15 each 12 Purchase 5 units @$19 each 20 Sale TO 14 units @$37 each 24 Purchase 11 units @ $ 23...

  • A company understated its ending Inventory balance by $9,000 in 2021. What impact will this error...

    A company understated its ending Inventory balance by $9,000 in 2021. What impact will this error have on cost of goods sold and gross profit in 2021 and 2022? 2021 Cost of goods sold Gross profit 2022 Cost of goods sold Gross profit

  • Current Attempt in Progress Donna Company reported these income statement data for a 2-year period Sales...

    Current Attempt in Progress Donna Company reported these income statement data for a 2-year period Sales 2022 $230,000 2021 $193.200 36.800 27.600 185 140 159 160 Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold 222 640 186.760 46,000 36.800 Gross prota 176,640 553.360 149.960 $43.240 Donna uses a periodic inventory system. The inventorestuary 1, 2021 and December 31, 2022. are correct. Howeve tory at December 31, 2021 soverstated by $1650...

  • Gross Profit Method Royal Gorge Company uses the gross profit method to estimate ending inventory and...

    Gross Profit Method Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of October was $58500. The following information for the month of November was available from company records: Purchases of $110,000 Freight-in of $3,000 Sales of $180,000 Sales Returns of $5,000 Purchase Returns of $4,000 In addition, the controller is aware of $8,000 of inventory that...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT