a) Assume that ending inventory was accidentally overstated by $1,000. What are the correct amounts for cost of goods sold and gross profit? b) How would the inventory error affect cost of goods sold and gross profit for the year ended December 31, 2009?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Van Dyke Copier inventory data for the year ended December 31, 2008 is as follow:

Sales Revenue……………………………………………… $50,000

Cost of Goods Sold:

Beginning Inventory………………………….. $ 4,200

Net Purchases…………………………………… 27,400

Cost of Goods Available……………………… 31,600

Ending Inventory……………………………… (4,600) 27,000

Gross Profit………………………………………………… $23,000

  1. a) Assume that ending inventory was accidentally overstated by $1,000. What are the correct

amounts for cost of goods sold and gross profit?

  1. b) How would the inventory error affect cost of goods sold and gross profit for the year ended

December 31, 2009?

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting Changes and Error Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education