Keats Co.’s beginning inventory at January 1, 2010, was understated by £26,000, and its ending inventory...
Homework Answers
Understatement of Beginning inventory = Understatement of Cost of goods sold
Overstatement of Ending inventory = Understatement of Cost of goods sold
So, here the cost of goods sold is understated by a total of £78,000 [ i.e. understatement of £26,000 + understatement of £52,000 ]
So, the answer is option c [ understated by £78,000 ]
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Keats Co.’s beginning inventory at January 1, 2010, was
understated by £26,000, and its ending inventory...
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