Sunland Hardware reported cost of goods sold as follows. 2021 2022 Beginning Inventory $23,000 30,500 Cost of Goods Purchased 151,000 205,000 Cost of Goods available for sale 174,000 235,500 Less: Ending Inventory 30,500 37,000 Costs of Goods Sold $143,500 198,500 Sunland made two errors: (1) 2021 ending inventory was overstated by $3,100, and (2) 2022 ending inventory was understated by $6,400. Compute the correct cost of goods sold for each year.
Sunland Hardware reported cost of goods sold as follows. 2021 2022 Beginning Inventory $23,000 30,500 Cost of Goods Purchased 151,000 205,000 Cost of Goods available for sale 174,000 235,500 Less: Ending Inventory 30,500 37,000 Costs of Goods Sold $143,500 198,500 Sunland made two errors: (1) 2021 ending inventory was overstated by $3,100, and (2) 2022 ending inventory was understated by $6,400. Compute the correct cost of goods sold for each year.
Chapter10: Inventory
Section: Chapter Questions
Problem 13PB: Company Edgar reported the following cost of goods sold but later realized that an error had been...
Related questions
Question
Sunland Hardware reported cost of goods sold as follows.
| 2021 | 2022 | |
| Beginning Inventory | $23,000 | 30,500 |
| Cost of Goods Purchased | 151,000 | 205,000 |
| Cost of Goods available for sale | 174,000 | 235,500 |
| Less: Ending Inventory | 30,500 | 37,000 |
| Costs of Goods Sold | $143,500 | 198,500 |
Sunland made two errors: (1) 2021 ending inventory was overstated by $3,100, and (2) 2022 ending inventory was understated by $6,400.
Compute the correct cost of goods sold for each year.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning