Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Errors in Inventory Counts The following information was taken from the records of Taylor Enterprises: 2013 2012 Beginning inventory $65,000 $55,000 Cost of goods purchased
Errors in Inventory Counts The following information was taken from the records of Taylor Enterprises:
2013 | 2012 | |
---|---|---|
Beginning inventory | $65,000 | $55,000 |
Cost of goods purchased | 425,000 | 405,000 |
Cost of goods available for sale | 490,000 | 460,000 |
Ending inventory | 60,000 | 65,000 |
Cost of goods sold | $430,000 | $395,000 |
The following two errors were made in the physical inventory counts: 1. 2012 ending inventory was understated by $15,000. 2. 2013 ending inventory was overstated by $10,000. Compute the correct cost of goods sold for both 2012 and 2013.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started