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June 1 Beginning Inventory 10 $3 $30 June 2 Purchase 30 $4 $120 June 10 Purchase 40 $6 $240 June 12 Sale 60 $20 $1,200
June 1 | Beginning Inventory | 10 | $3 | $30 |
June 2 | Purchase | 30 | $4 | $120 |
June 10 | Purchase | 40 | $6 | $240 |
June 12 | Sale | 60 | $20 | $1,200 |
June 17 | Purchase | 70 | $7 | $490 |
June 21 | Purchase | 50 | $10 | $500 |
June 29 | Sale | 80 | $22 | $1,760 |
- Assume the company uses the PERIODIC method for inventory.
- Additional Information: The ending inventory consists of 15 units purchased on 6/2, 25 units purchased on 6/10, and the remaining units were purchased on 6/21.
Question 24 (Mandatory) (3 points)
If Year 1s net cost of purchases is understated, what is the impact on Year 1s Cost of Goods Sold?
Question 24 options:
No Impact
Understated
Overstated
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