Metlock, Inc. reported these income statement data for a 2-year period. Sales revenue Beginning inventory Cost of goods purchased Cost of goods available for sale Less: Ending inventory Cost of goods sold Gross profit 2022 $253,000 44,000 214,000 258,000 54,500 203,500 $49,500 2021 $210,500 35,000 180,000 215,000 44,000 171,000 $39,500 Metlock, Inc. uses a periodic inventory system. The inventories at January 1, 2021, and December 31, 2022, are correct. However, the ending inventory at December 31, 2021, is overstated by $5,000.

Metlock, Inc. reported these income statement data for a 2-year period. Sales revenue Beginning inventory Cost of goods purchased Cost of goods available for sale Less: Ending inventory Cost of goods sold Gross profit 2022 $253,000 44,000 214,000 258,000 54,500 203,500 $49,500 2021 $210,500 35,000 180,000 215,000 44,000 171,000 $39,500 Metlock, Inc. uses a periodic inventory system. The inventories at January 1, 2021, and December 31, 2022, are correct. However, the ending inventory at December 31, 2021, is overstated by $5,000.

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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