Ian’s Small Appliances reported cost of goods sold as follows.

Calculate inventory errors. (LO 8)

Ian's Small Appliances reported cost of goods sold as follows.

200s

2006

Beginning inventory

$130,000

$ 50,000

Purchases

275,000

240,000

Cost of goods available for sale

405,000

290,000

Ending inventory

50,000

40,00

Cost of goods sold

$355,000

$250,00

I an's made two errors:

1. 2005 ending inventory was understated by 95,000.

2. 2006 ending inventory was overstated by $2,000.

Calculate the correct cost of goods sold for 2005 and2006.

"Is this question part of your assignment? We can help"

ORDER NOW

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *