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Errors in Inventory Counts The following information was taken from the records of Taylor Enterprises: 2013 2012 Beginning inventory $230,000 $220,000 Cost of goods purchased 590,000 570,000 Cost of goods available for sale 820,000 790,000 225,000 230,000 $595,000 $560,000 Ending inventory Cost of goods sold The following two errors were made in the physical inventory counts: 1. 2012 ending inventory was understated by $27,000. 2. 2013 ending inventory was overstated by $22,000. Compute the correct cost of goods sold for both 2012 and 2013. 2013 2012 Cost of goods sold $ 568,000 x $ 582,000 x

Errors in Inventory Counts The following information was taken from the records of Taylor Enterprises: 2013 2012 Beginning inventory $230,000 $220,000 Cost of goods purchased 590,000 570,000 Cost of goods available for sale 820,000 790,000 225,000 230,000 $595,000 $560,000 Ending inventory Cost of goods sold The following two errors were made in the physical inventory counts: 1. 2012 ending inventory was understated by $27,000. 2. 2013 ending inventory was overstated by $22,000. Compute the correct cost of goods sold for both 2012 and 2013. 2013 2012 Cost of goods sold $ 568,000 x $ 582,000 x

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Errors in Inventory Counts The following information was taken from the records of Taylor Enterprises: 2013 2012 Beginning inventory $230,000 $220,000 Cost of goods purchased 590,000 570,000 Cost of goods available for sale 820,000 790,000 Ending inventory 225,000 230,000 Cost of goods sold $595,000 $560,000 The following two errors were made in the physical inventory counts: 1. 2012 ending inventory was understated by $27,000. 2. 2013 ending inventory was overstated by $22,000. Compute the correct cost of goods sold for both 2012 and 2013. 2013 2012 Cost of goods sold $ 568,000 x $ 582,000 x Check
Transcribed Image Text:Errors in Inventory Counts The following information was taken from the records of Taylor Enterprises: 2013 2012 Beginning inventory $230,000 $220,000 Cost of goods purchased 590,000 570,000 Cost of goods available for sale 820,000 790,000 Ending inventory 225,000 230,000 Cost of goods sold $595,000 $560,000 The following two errors were made in the physical inventory counts: 1. 2012 ending inventory was understated by $27,000. 2. 2013 ending inventory was overstated by $22,000. Compute the correct cost of goods sold for both 2012 and 2013. 2013 2012 Cost of goods sold $ 568,000 x $ 582,000 x Check
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