Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Linda Company reported these income statement data for a 2-year period. Sales 2022 $225,000 36.000 2021 $189,000 27,000 Beginning inventory Cost of goods purchased 181,800

image text in transcribedimage text in transcribed

Linda Company reported these income statement data for a 2-year period. Sales 2022 $225,000 36.000 2021 $189,000 27,000 Beginning inventory Cost of goods purchased 181,800 155,700 Cost of goods available for sale 217,800 182,700 Ending inventory 45,000 36,000 Cost of goods sold 172,800 146.700 Gross profit $52,200 $42,300 Linda 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 $3,600. Your answer is correct. Prepare correct income statement data for the 2 years. 2021 2022 y 189000 225000 Sales Cost of Goods Sold Beginning Inventory 27000 32400 Cost of Goods Purchased 155700 100 181800 Cost of Goods Available for Sale 214200 182700 32400 Ending Inventory | 32400 45000 i Cost of Goods Sold 150300 169200 Gross Profit 38700 55800 e Textbook and Media Your answer is incorrect. What is the cumulative effect of the inventory error on total gross profit for the 2 years? (if answer is zero please enter O, do not leave any field blank.) Total gross profit for the two years $ e Textbook and Media Attempts: 5 of 10 used

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Using Rocchio algorithm find

Answered: 1 week ago