(L.OBJ. 6) Next year’s effect of an inventory error [5—10 min] Refer back to the Boston...

(L.OBJ. 6) Next year’s effect of an inventory error [5—10 min]

Refer back to the Boston Cycles’ inventory data in Short Exercise 6-11.

Requirement

1. How would the inventory error affect Boston Cycles’ cost of goods sold and gross profit for the year ended December 31, 2012, if the error is nor corrected in 2011?