Question
Brenda Company reported these income statement data for a 2-year period. 2022 2021 Sales $325,000 $273,000 Beginning inventory 52,000 39,000 Cost of goods purchased 262,600
Brenda Company reported these income statement data for a 2-year period.
| 2022 | 2021 | ||||
|---|---|---|---|---|---|
| Sales | $325,000 | $273,000 | |||
| Beginning inventory | 52,000 | 39,000 | |||
| Cost of goods purchased | 262,600 | 224,900 | |||
| Cost of goods available for sale | 314,600 | 263,900 | |||
| Ending inventory | 65,000 | 52,000 | |||
| Cost of goods sold | 249,600 | 211,900 | |||
| Gross profit | $75,400 | $61,100 |
Brenda 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 is overstated by $5,200.
Prepare correct income statement data for the 2 years AND What is the cumulative effect of the inventory error on total gross profit for the 2 years?
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Forensic And Investigative Accounting
Authors: D. Larry Crumbley, Lester E. Heitger, G. Stevenson Smith
7th Edition
0808040731, 9780808040736
