Hull Company reported the following income statement information for the current year: Sales$418,000 Cost of goods sold: Beginning inventory$144,000 Cost of goods purchased 281,000 Cost of goods available for sale 425,000 Ending inventory 152,000 Cost of goods sold 273,000 Gross profit$145,000 The beginning inventory balance is correct. However, the ending inventory figure was overstated by $28,000. Given this information, the correct gross profit would be:

Correct Gross Profit = Gross Profit - Ending Inventory Overstated Value

Answered: Hull Company reported the following…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 33BE

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Hull Company reported the following income statement information for the current year:


Sales	$	418,000
Cost of goods sold:
Beginning inventory	$	144,000
Cost of goods purchased		281,000
Cost of goods available for sale		425,000
Ending inventory		152,000
Cost of goods sold		273,000
Gross profit	$	145,000

The beginning inventory balance is correct. However, the ending inventory figure was overstated by $28,000. Given this information, the correct gross profit would be:

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