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.

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.

Image Transcription

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.

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