Errors in Inventory Counts The following information was taken from the records of Taylor Enterprises: 2013 2012 Beginning inventory Cost of goods purchased $150,000 $140,000 510,000 490,000 Cost of goods available for sale 660,000 630,000 Ending inventory 145,000 150,000 Cost of goods sold $515,000 $480,000 The following two errors were made in the physical inventory counts: 1. 2012 ending inventory was understated by $19,000. 2. 2013 ending inventory was overstated by $14,000. Compute the correct cost of goods sold for both 2012 and 2013. 2013 2012 Cost of goods sold |× $ 461,000 v Check
Errors in Inventory Counts The following information was taken from the records of Taylor Enterprises: 2013 2012 Beginning inventory Cost of goods purchased $150,000 $140,000 510,000 490,000 Cost of goods available for sale 660,000 630,000 Ending inventory 145,000 150,000 Cost of goods sold $515,000 $480,000 The following two errors were made in the physical inventory counts: 1. 2012 ending inventory was understated by $19,000. 2. 2013 ending inventory was overstated by $14,000. Compute the correct cost of goods sold for both 2012 and 2013. 2013 2012 Cost of goods sold |× $ 461,000 v Check
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The question is in the attached image.
![**Errors in Inventory Counts**
The following information was taken from the records of Taylor Enterprises:
| Year | 2013 | 2012 |
|------|----------|----------|
| Beginning inventory | $150,000 | $140,000 |
| Cost of goods purchased | $510,000 | $490,000 |
| Cost of goods available for sale | $660,000 | $630,000 |
| Ending inventory | $145,000 | $150,000 |
| Cost of goods sold | $515,000 | $480,000 |
**The following two errors were made in the physical inventory counts:**
1. 2012 ending inventory was understated by $19,000.
2. 2013 ending inventory was overstated by $14,000.
**Task:**
Compute the correct cost of goods sold for both 2012 and 2013.
- Input box for cost of goods sold:
- 2013: [Input Box]
- 2012: [461,000 entered]
**Check Button:**
- Use this button to validate your answers.
**Feedback:**
- You have correctly selected 1.
- Rating: Partially correct
- Marks for this submission: 7.50/15.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6402e7e1-6008-43b1-b6b0-b69100ef7937%2F3ba61361-e65a-44a1-b8dc-669634ae8b1a%2Ftigzku_processed.png&w=3840&q=75)
Transcribed Image Text:**Errors in Inventory Counts**
The following information was taken from the records of Taylor Enterprises:
| Year | 2013 | 2012 |
|------|----------|----------|
| Beginning inventory | $150,000 | $140,000 |
| Cost of goods purchased | $510,000 | $490,000 |
| Cost of goods available for sale | $660,000 | $630,000 |
| Ending inventory | $145,000 | $150,000 |
| Cost of goods sold | $515,000 | $480,000 |
**The following two errors were made in the physical inventory counts:**
1. 2012 ending inventory was understated by $19,000.
2. 2013 ending inventory was overstated by $14,000.
**Task:**
Compute the correct cost of goods sold for both 2012 and 2013.
- Input box for cost of goods sold:
- 2013: [Input Box]
- 2012: [461,000 entered]
**Check Button:**
- Use this button to validate your answers.
**Feedback:**
- You have correctly selected 1.
- Rating: Partially correct
- Marks for this submission: 7.50/15.00
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