Hull Company reported the following income statement information for the current year: Sales $429,000 goods sold: Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Cost $160,500 292,000 452,500 163,000 289,500 Gross profit $139,500 The beginning inventory balance is correct. However, the ending inventory figure was overstated by $39,000. Given this information, the correct gross profit wouid be: Multiple Choice $100,500. $139,500. $178,500. $113,500. < Prev 39 of 60 Next >

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 3RE: Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of...
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Hull Company reported the following income statement information for the current year:
Sales
$429,000
Cost of goods sold:
$160,500
Beginning inventory
Cost of goods purchased
292,000
Cost of goods available for sale
Ending inventory
452,500
163,000
Cost of goods sold
289,500
Gross profit
$139,500
The beginning inventory balance is correct. However, the ending inventory figure was overstated by $39,000. Given this information, the correct gross profit would be:
Multiple Choice
$100,500.
$139,500.
$178,500.
$113,500.
< Prev
39 of 60
Next >
Transcribed Image Text:Hull Company reported the following income statement information for the current year: Sales $429,000 Cost of goods sold: $160,500 Beginning inventory Cost of goods purchased 292,000 Cost of goods available for sale Ending inventory 452,500 163,000 Cost of goods sold 289,500 Gross profit $139,500 The beginning inventory balance is correct. However, the ending inventory figure was overstated by $39,000. Given this information, the correct gross profit would be: Multiple Choice $100,500. $139,500. $178,500. $113,500. < Prev 39 of 60 Next >
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