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Bramble Watch Company reported the following income statement data for a 2-year period. 2022 2021 Sales revenue $250,000 $220,000 Cost of goods sold Beginning inventory
Bramble Watch Company reported the following income statement data for a 2-year period. 2022 2021 Sales revenue $250,000 $220,000 Cost of goods sold Beginning inventory 43,000 32,000 Cost of goods purchased 209,000 177,000 Cost of goods available for sale 252,000 209,000 Ending inventory 48,000 43.000 Cost of goods sold 204,000 166,000 Gross profit $46,000 $54.000 Bramble uses a periodic inventory system. The inventories at January 1, 2021, and December 31, 2022, are correct. However, the ending inventory at December 31, 2021, was overstated $6,000. 2022 2021 Sales $ 250,000 $ 220,000 Cost of goods sold Beginning inventory 43000 26000 Cost of goods purchased 209,000 177,000 Cost of goods available for sale 252000 203,000 Ending inventory 42000 43000 Cost of goods sold 210,000 160,000 Gross profit $ 40,000 $ $ 60,000 What is the cumulative effect of the inventory error on total gross profit for the 2 years? Cumulative effect of the inventory error $
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