OBOOR SHOW MO HOW La UP Prin lemn Periodic inventory by three methods; cost of goods sold The units of an item available for sale during the year were as follows: Jan. 1 Mar. 10 Purchase Purchase Inventory 180 units at $108 224 units at $110 Aug. 30 200 units at $116 Purchase 196 units at $120 There are 208 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost and the cost of goods sold by three methods. Dec. 12 Cost of Inventory and cost of Goods Sold Inventory Method Ending Inventory Cost of Goods Sold First-in, first-out (FIFO) $ Last-in, first-out (LIFO) Weighted average cost Effect of Errors in Physical Inventory Madison River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 2048, Madison incorrectly counted its inventory as $545,000 instead of the correct amount of $555,400. a. State the effects of the error on the December 31, 20Y8, balance sheet of Madison River Supply Balance Sheet Items Understated / Overstated Amount Inventory Current Assets Total Assets Stockholders' Equity b. State the effects of the error on the income statement of Madison River Supply for the year ended December 31, 2048 Income Statement Items Overstated / Understated Amount Cost of Goods Sold Gross Profit Net Income C. If uncorrected, what would be the effects of the error on the 2019 income statement? Income Statement Items Overstated / Understated Amount Cost of Goods Sold Gross Profit Net Income d. If uncorrected, what would be the effects of the error on the December 31, 2019, balance sheet? 1. The balance sheet would be correct, because the 2018 inventory error reverses itself in 2019, 2. The income for 2049 would be understated. Check My Work Previous Next Email Instructor Save and Exit Submit Assignment for Grading