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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?

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter5: Accounting For Retail Businesses
Section: Chapter Questions
Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...
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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?

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