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?
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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
- 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?
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