Errors in Inventory Counts The following information was taken from the records of Tinker Enterprises: 2019 2018 Beginning inventory $60,000 $50,000 Cost of goods purchased 420,000 400,000 Cost of goods available for sale 480,000 450,000 Ending inventory 55,000 60,000 Cost of goods sold $425,000 $390,000 The following two errors were made in the physical inventory counts: 1. 2018 ending inventory was understated by $8,000. 2. 2019 ending inventory was overstated by $4,000. Compute the correct cost of goods sold for both 2018 and 2019. 2019 2018 Cost of goods sold $ 0 $
Errors in Inventory Counts The following information was taken from the records of Tinker Enterprises: 2019 2018 Beginning inventory $60,000 $50,000 Cost of goods purchased 420,000 400,000 Cost of goods available for sale 480,000 450,000 Ending inventory 55,000 60,000 Cost of goods sold $425,000 $390,000 The following two errors were made in the physical inventory counts: 1. 2018 ending inventory was understated by $8,000. 2. 2019 ending inventory was overstated by $4,000. Compute the correct cost of goods sold for both 2018 and 2019. 2019 2018 Cost of goods sold $ 0 $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:**Errors in Inventory Counts**
The following information was taken from the records of Tinker Enterprises:
| | 2019 | 2018 |
|----------------|-----------|-----------|
| Beginning inventory | $60,000 | $50,000 |
| Cost of goods purchased | 420,000 | 400,000 |
| Cost of goods available for sale | 480,000 | 450,000 |
| Ending inventory | 55,000 | 60,000 |
| Cost of goods sold | $425,000 | $390,000 |
The following two errors were made in the physical inventory counts:
1. 2018 ending inventory was understated by $8,000.
2. 2019 ending inventory was overstated by $4,000.
Compute the correct cost of goods sold for both 2018 and 2019.
| | 2019 | 2018 |
|----------------|------|------|
| Cost of goods sold | $ | $ |
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