Windsor Hardware reported cost of goods sold as follows.20222021Beginning inventory$31,500$24,000Cost of goods purchased191,500154,000Cost of goods available for sale223,000178,000Less: Ending inventory36.50031,500Cost of goods sold$186,500$146,500Windsor made two errors:1.2021 ending inventory was overstated by $3.250.2.2022 ending inventory was understated by $6,500.Compute the correct cost of goods sold for each year.20222021Cost of goods sold24%24

COGS include all those costs which are directly incurred in the manufacturing of the product. COGS…

Answered: Windsor made two errors: 1.2021 ending…

Windsor made two errors: 1.2021 ending inventory was overstated by $3,250. 2.2022 ending inventory was understated by $6.500. Compute the

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

Windsor Hardware reported cost of goods sold as follows.
2022
2021
Beginning inventory
$31,500
$24,000
Cost of goods purchased
191,500
154,000
Cost of goods available for sale
223,000
178,000
Less: Ending inventory
36.500
31,500
Cost of goods sold
$186,500
$146,500
Windsor made two errors:
1.2021 ending inventory was overstated by $3.250.
2.2022 ending inventory was understated by $6,500.
Compute the correct cost of goods sold for each year.
2022
2021
Cost of goods sold
24
%24

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