The following information was taken from the records of Taylor Enterprises: Beginning Inventory $60,000 $50,000 Cost of Goods Purchased 420,000 400,000 Cost of Goods Available for Sale 480,000 450,000 Ending Inventory 55,000 60,000 Cost of Goods Sold $425,000 $390,000 The following two errors were made in the physical inventory counts: 2015 ending inventory was understated by $7,000 2016 ending inventory was overstated by $3, 000 Compute the correct cost of goods sold for both 2015 and 2016.
Exercises 6-5A
Errors in Inventory Counts
The following information was taken from the records of Taylor Enterprises:
Beginning Inventory $60,000 $50,000
Cost of Goods Purchased 420,000 400,000
Cost of Goods Available for Sale 480,000 450,000
Ending Inventory 55,000 60,000
Cost of Goods Sold $425,000 $390,000
The following two errors were made in the physical inventory counts:
- 2015 ending inventory was understated by $7,000
- 2016 ending inventory was overstated by $3, 000
Compute the correct cost of goods sold for both 2015 and 2016.
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