part 1

During the audit of Village Idiot Company's 2022 financial statements, the auditors discovered that the 2000 ending inventory had been overstated by $10,000 and that the 2022 ending inventory had been overstated by $8,000. Before the effect of these errors, 2022 pretax profit had been computed as $100,000. What should be reported as the correct 2022 profit before taxes?

part 2

how Ltd had the following inventory activity during April:

 Units Unit cost Total cost

Beginning inventory 800 $10.00 $8,000

Purchase: April 4 1,400 11.00 15,400

Sale: April 8 (1,500)

Purchase: April 12 900 10.50 9,450

Sales: April 24 (900)

If Shillings is using a perpetual system and the FIFO costing assumption, what is the ending inventory valuation?

part 3

chnoodlefest Company had its merchandise inventory warehouse destroyed by a fire. Thankfully, the owner had the accounting records at home to prepare financial statements after counting the inventory earlier in the day. The company used the periodic inventory system. In the shock of being notified of the fire, the owner spilled his dinner on the statement of earnings he had just completed. However, the following information was readable: Sales, $200,000; Beginning Inventory, $20,000; Purchases, $130,000; Total Operating Expenses (not including taxes), $40,000; and Profit Before Taxes, $20,000. There were no sales returns, purchases returns, sales discounts nor purchases discounts. Compute the amount of the ending inventory on hand before the fire.