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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