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The following information was taken from the records of Tinker Enterprises: 2019 Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold 2018 $60,000 $50,000 420,000 400,000 480,000 450,000 55,000 60,000 $425,000 $390,000 The following two errors were made in the physical inventory counts: 1. 2018 ending inventory was understated by $8,000. 2. 2019 ending inventory was overstated by $4,000. Compute the correct cost of goods sold for both 2018 and 2019.

The following information was taken from the records of Tinker Enterprises: 2019 Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold 2018 $60,000 $50,000 420,000 400,000 480,000 450,000 55,000 60,000 $425,000 $390,000 The following two errors were made in the physical inventory counts: 1. 2018 ending inventory was understated by $8,000. 2. 2019 ending inventory was overstated by $4,000. Compute the correct cost of goods sold for both 2018 and 2019.

FINANCIAL ACCOUNTING
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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Errors in Inventory Counts The following information was taken from the records of Tinker Enterprises: 2019 Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold $60,000 $50,000 2018 420,000 400,000 480,000 55,000 450,000 60,000 $425,000 $390,000 The following two errors were made in the physical inventory counts: 1. 2018 ending inventory was understated by $8,000. 2. 2019 ending inventory was overstated by $4,000. Compute the correct cost of goods sold for both 2018 and 2019.
Transcribed Image Text:Errors in Inventory Counts The following information was taken from the records of Tinker Enterprises: 2019 Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold $60,000 $50,000 2018 420,000 400,000 480,000 55,000 450,000 60,000 $425,000 $390,000 The following two errors were made in the physical inventory counts: 1. 2018 ending inventory was understated by $8,000. 2. 2019 ending inventory was overstated by $4,000. Compute the correct cost of goods sold for both 2018 and 2019.
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