Old Time Bakery reported sales revenue of $134,000 and cost of goods sold of $89,000 Requirements 1 Compute Old Time Bakerys correct gross profit assuming the companys ending inventory is overstated by $1,100 Show your work 2 Compute Old Time Bakerys correct gross profit assuming the companys endin...

Req 1 Sales Revenue 134000 Cost of Goods Sold 89000 1 ...

Old Time Bakery reported sales revenue of $134,000 and cost of goods sold of $89,000. Requirements 1.

Question:

Old Time Bakery reported sales revenue of $134,000 and cost of goods sold of $89,000.

Requirements
1. Compute Old Time Bakery’s correct gross profit assuming the company’s is overstated by $1,100. Show your work.
2. Compute Old Time Bakery’s correct gross profit assuming the company’s is understated by $2,200. Show your work.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...