Hawaii T-Shirt Company reported the following financial information for fiscal years 2019 and 2020. Twelve months ended March 31 2019 2020 Beginning inventory 31,000 27,000 Plus: Purchases 185,000 188,000 Goods available for sale 216,000 215,000 Less: Ending inventory 27,000 30,000 Cost of goods sold 189,000 185,000 The company's controller just discovered that ending inventory for 2019 should have been $32,000 instead of $27,000. Once the error is corrected what will be the restated cost of goods sold figure for 2019? Once the error is corrected what will be the restated cost of goods sold figure for 2020? . Was net income in 2019 overstated, understated or not affected by the inventory error? Was net income in 2020 overstated, understated or not affected by the inventory error?
Hawaii T-Shirt Company reported the following financial information for fiscal years 2019 and 2020. Twelve months ended March 31 2019 2020 Beginning inventory 31,000 27,000 Plus: Purchases 185,000 188,000 Goods available for sale 216,000 215,000 Less: Ending inventory 27,000 30,000 Cost of goods sold 189,000 185,000 The company's controller just discovered that ending inventory for 2019 should have been $32,000 instead of $27,000. Once the error is corrected what will be the restated cost of goods sold figure for 2019? Once the error is corrected what will be the restated cost of goods sold figure for 2020? . Was net income in 2019 overstated, understated or not affected by the inventory error? Was net income in 2020 overstated, understated or not affected by the inventory error?
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 67P
Related questions
Topic Video
Question
Hawaii T-Shirt Company reported the following financial information for fiscal years 2019 and 2020.
Twelve months ended March 31 | ||
2019 | 2020 | |
Beginning inventory | 31,000 | 27,000 |
Plus: Purchases | 185,000 | 188,000 |
Goods available for sale | 216,000 | 215,000 |
Less: Ending inventory | 27,000 | 30,000 |
Cost of goods sold | 189,000 | 185,000 |
The company's controller just discovered that ending inventory for 2019 should have been $32,000 instead of $27,000.
- Once the error is corrected what will be the restated cost of goods sold figure for 2019?
- Once the error is corrected what will be the restated cost of goods sold figure for 2020? .
- Was net income in 2019 overstated, understated or not affected by the inventory error?
- Was net income in 2020 overstated, understated or not affected by the inventory error?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Individual Income Taxes](https://www.bartleby.com/isbn_cover_images/9780357109731/9780357109731_smallCoverImage.gif)
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![Individual Income Taxes](https://www.bartleby.com/isbn_cover_images/9780357109731/9780357109731_smallCoverImage.gif)
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning