Effect of an inventory error—one year only [5 min]
California Pool Supplies’ inventory data for the year ended December 31, 2012, follow:
Sales revenue ............... | $ 60,000 |
Cost of goods sold: | |
Beginning inventory ........ | $ 4,200 |
Net purchases ............ | 26,600 |
Cost of goods available ...... | $ 30,800 |
Ending inventory .............. | (6,200) |
Cost of goods sold ............ | $ 24,600 |
Gross profit ..................... | $ 35,400 |
Assume that the ending inventory was accidentally overstated by $2,400.
Requirement
1. What are the correct amounts for cost of goods sold and gross profit?
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