Chapter 5, Problem 5.38EX

To determine

Cost of goods sold indicates the costs involved for the inventory sold by the business in a specific period of time. Its mathematical representation is as below:

$\boxed{\text{Cost of Goods Sold}=\text{Beginning Inventory}+\text{Purchases}–\text{Ending Inventory}}$

To Identify: The errors in the schedule of cost of merchandise sold of the company.