Errors in Inventory Counts The following information was taken from the records of Taylor Enterprises: 2016 2015 $60,000 $50,000 420,000 400,000 Cost of goods available for sale 480,000 450,000 55,000 60,000 $425,000 $390,000 Beginning inventory Cost of goods purchased Ending inventory Cost of goods sold The following two errors were made in the physical inventory counts: 1. 2015 ending inventory was understated by $7,000. 2. 2016 ending inventory was overstated by $3,000. Compute the correct cost of goods sold for both 2015 and 2016.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 13EA: If a group of inventory items costing $15,000 had been omitted from the year-end inventory count,...
icon
Related questions
Question
Errors in Inventory Counts The following information was taken from the
records of Taylor Enterprises:
2016
2015
$60,000 $50,000
420,000 400,000
Cost of goods available for sale 480,000 450,000
55,000 60,000
$425,000 $390,000
Beginning inventory
Cost of goods purchased
Ending inventory
Cost of goods sold
The following two errors were made in the physical inventory counts:
1. 2015 ending inventory was understated by $7,000.
2. 2016 ending inventory was overstated by $3,000.
Compute the correct cost of goods sold for both 2015 and 2016.
Transcribed Image Text:Errors in Inventory Counts The following information was taken from the records of Taylor Enterprises: 2016 2015 $60,000 $50,000 420,000 400,000 Cost of goods available for sale 480,000 450,000 55,000 60,000 $425,000 $390,000 Beginning inventory Cost of goods purchased Ending inventory Cost of goods sold The following two errors were made in the physical inventory counts: 1. 2015 ending inventory was understated by $7,000. 2. 2016 ending inventory was overstated by $3,000. Compute the correct cost of goods sold for both 2015 and 2016.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Similar questions
Recommended textbooks for you
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Century 21 Accounting General Journal
Century 21 Accounting General Journal
Accounting
ISBN:
9781337680059
Author:
Gilbertson
Publisher:
Cengage
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage