Tamarisk Hardware reported cost of goods sold as follows. 2021 2022 Beginning inventory $ 23,000 $ 34,000 Cost of goods purchased 150,000 182,500 Cost of goods available for sale 173,000 216,500 Less: Ending inventory 34,000 37,500 Cost of goods sold $139,000 $179,000 Tamarisk made two errors: (1) 2021 ending inventory was overstated by $3,550, and (2) 2022 ending inventory was understated by $6,600. Compute the correct cost of goods sold for each year. 2021 2022 Cost of goods sold 2$ %24

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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**Question 12 of 13**

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Tamarisk Hardware reported the cost of goods sold as follows:

|                        | 2021     | 2022     |
|------------------------|----------|----------|
| Beginning inventory    | $23,000  | $34,000  |
| Cost of goods purchased| $150,000 | $182,500 |
| Cost of goods available for sale  | $173,000 | $216,500 |
| Less: Ending inventory | $34,000  | $37,500  |
| Cost of goods sold     | $139,000 | $179,000 |

Tamarisk made two errors: (1) 2021 ending inventory was overstated by $3,550, and (2) 2022 ending inventory was understated by $6,600.

Compute the correct cost of goods sold for each year.

|                        | 2021     | 2022     |
|------------------------|----------|----------|
| Cost of goods sold     | $        | $        |

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Transcribed Image Text:**Question 12 of 13** **Current Attempt in Progress** Tamarisk Hardware reported the cost of goods sold as follows: | | 2021 | 2022 | |------------------------|----------|----------| | Beginning inventory | $23,000 | $34,000 | | Cost of goods purchased| $150,000 | $182,500 | | Cost of goods available for sale | $173,000 | $216,500 | | Less: Ending inventory | $34,000 | $37,500 | | Cost of goods sold | $139,000 | $179,000 | Tamarisk made two errors: (1) 2021 ending inventory was overstated by $3,550, and (2) 2022 ending inventory was understated by $6,600. Compute the correct cost of goods sold for each year. | | 2021 | 2022 | |------------------------|----------|----------| | Cost of goods sold | $ | $ | **eTextbook and Media** - [Save for Later] **Attempts: unlimited** **[Submit Answer]**
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