Sheffield Hardware Limited reported the following amounts for its cost of goods sold and inventory: Cost of goods sold Ending inventory (a) 2024 $169,500 36,800 Ending inventory Sheffield made two errors in 2023. It recorded a $4,000 inventory purchase in transit at the end of 2023 that was shipped FOB destination and included this amount in ending inventory. Also during the year-end invent count, staff forgot to count $5,000 of ending inventory that was on hand. No one discovered these errors in 2023. 2023 $155,100 Calculate the correct ending inventory and cost of goods sold amounts for each year. $ 30,400 Cost of goods sold $ 2024 $ $ 2023

Sheffield Hardware Limited reported the following amounts for its cost of goods sold and inventory: Cost of goods sold Ending inventory (a) 2024 $169,500 36,800 Ending inventory Sheffield made two errors in 2023. It recorded a $4,000 inventory purchase in transit at the end of 2023 that was shipped FOB destination and included this amount in ending inventory. Also during the year-end invent count, staff forgot to count $5,000 of ending inventory that was on hand. No one discovered these errors in 2023. 2023 $155,100 Calculate the correct ending inventory and cost of goods sold amounts for each year. $ 30,400 Cost of goods sold $ 2024 $ $ 2023

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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Ayayai Hardware Limited reported the following amounts for its cost of goods sold and Inventory: Cost of goods sold Ending inventory 2018 Ending inventory $169,200 Cost of goods sold 37,400 2017 Ayayai made two errors: (1) ending inventory for 2018 was overstated by $2,000 and (2) ending inventory for 2017 was understated by $4,100. Assume that neither error has been found or corrected. $152,900 Calculate the correct ending inventory and cost of goods sold amounts for each year. $ 29,400 2018 tA $ LA 2017