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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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