Sheridan’s Hardware reported cost of goods sold as follows. 2022 2023 Beginning inventory $ 25,000 $ 35,000 Cost of goods purchased 140,000 170,000 Cost of goods available for sale 165,000 205,000 Ending inventory 35,000 40,000 Cost of goods sold $130,000 $165,000 Sheridan’s made two errors: (1) 2022 ending inventory was overstated $4,000, and (2) 2023 ending inventory was understated $6,000. Compute the correct cost of goods sold for each year. 2022 2023 Cost of goods sold $enter a dollar amount $enter a dollar amount
Sheridan’s Hardware reported cost of goods sold as follows. 2022 2023 Beginning inventory $ 25,000 $ 35,000 Cost of goods purchased 140,000 170,000 Cost of goods available for sale 165,000 205,000 Ending inventory 35,000 40,000 Cost of goods sold $130,000 $165,000 Sheridan’s made two errors: (1) 2022 ending inventory was overstated $4,000, and (2) 2023 ending inventory was understated $6,000. Compute the correct cost of goods sold for each year. 2022 2023 Cost of goods sold $enter a dollar amount $enter a dollar amount
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Sheridan’s Hardware reported cost of goods sold as follows.
Sheridan’s made two errors: (1) 2022 ending inventory was overstated $4,000, and (2) 2023 ending inventory was understated $6,000.
Compute the correct cost of goods sold for each year.
|
2022
|
2023
|
|||
|---|---|---|---|---|
|
Beginning inventory
|
$ 25,000
|
$ 35,000
|
||
|
Cost of goods purchased
|
140,000
|
170,000
|
||
|
Cost of goods available for sale
|
165,000
|
205,000
|
||
|
Ending inventory
|
35,000
|
40,000
|
||
|
Cost of goods sold
|
$130,000
|
$165,000
|
Sheridan’s made two errors: (1) 2022 ending inventory was overstated $4,000, and (2) 2023 ending inventory was understated $6,000.
Compute the correct cost of goods sold for each year.
|
2022
|
2023
|
|||
|---|---|---|---|---|
|
Cost of goods sold
|
$enter a dollar amount
|
$enter a dollar amount
|
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