Swifty made two errors:1. 2021 ending inventory was overstated by $6,200.2. 2022 ending inventory was understated by $2,900.Calculate the correct cost of goods sold for each year.Cost of goods sold20222021 Beginning inventoryCost of goods purchasedCost of goods available for saleEnding inventoryCost of goods soldSwifty made two errors:2022$28,700191,400220,10037.600$182,5002021$20,200148,900169,10028,700$140,4001. 2021 ending inventory was overstated by $6,200.2. 2022 ending inventory was understated by $2,900.

Solution: Cost of goods sold is computed as = Beginning inventory + Cost of goods purchases - Ending…

Answered: Swifty made two errors: 1. 2021 ending…

Swifty made two errors: 1. 2021 ending inventory was overstated by $6,200. 2. 2022 ending inventory was understated by $2,900. Calculate the correct cost of goods sold for each year.

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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Question

100%

Swifty made two errors:
1. 2021 ending inventory was overstated by $6,200.
2. 2022 ending inventory was understated by $2,900.
Calculate the correct cost of goods sold for each year.
Cost of goods sold
2022
2021

Beginning inventory
Cost of goods purchased
Cost of goods available for sale
Ending inventory
Cost of goods sold
Swifty made two errors:
2022
$28,700
191,400
220,100
37.600
$182,500
2021
$20,200
148,900
169,100
28,700
$140,400
1. 2021 ending inventory was overstated by $6,200.
2. 2022 ending inventory was understated by $2,900.

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