FINANCIAL ACCOUNTING CUSTOM PACKAGE
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ISBN: 9781256636755
Author: REIMERS
Publisher: Pearson Custom Publishing
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Chapter 5A, Problem 3EA
Ian’s Small Appliances reported cost of goods sold as follows:
Ian’s made two errors:
- 1. 2009 ending inventory was understated by $5,000.
- 2. 2010 ending inventory was overstated by $2,000.
Calculate the correct cost of goods sold for 2009 and 2010.
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Foyle Hardware reported cost of goods sold as follows:
2014
2013
Beginning Inventory
$30,000
$20,000
Cost of Goods purchased
175,000
164,000
Cost of Goods available for sale
205,000
184,000
Less: Ending Inventory
37,000
30,000
Cost of Goods Sold
$168,000
154,000
Foyle made two errors:
2013 ending inventory was overstated by $2,000.
2014 ending inventory was understated by $5,000.
Required:
Compute the correct cost of goods sold for each year.
In March 2018, Blue Devil Company realized that they had overstated their December 2016 ending inventory by $15,000. If the reported Net Income for 2017 was $125,000, what should be the correct Net Income for 2017?
Why is the answer 140,000? If ending inventory is overstated by 15k wouldnt cost of goods sold be understated by 15k making Net income be overstated by 15k, therefore subtracting 15k from the net income to correct the error? why would one add 15k to Net income to get 140k?
COULD YOU PLEASE SOLVE IT WITH CORRECT AND INCORRECT STYLE
Foyle Hardware reported cost of goods sold as follows:
2014
2013
Beginning Inventory
$30,000
$20,000
Cost of Goods purchased
175,000
164,000
Cost of Goods available for sale
205,000
184,000
Less: Ending Inventory
37,000
30,000
Cost of Goods Sold
$168,000
154,000
Foyle made two errors:
2013 ending inventory was overstated by $2,000.
2014 ending inventory was understated by $5,000.
Required:
Compute the correct cost of goods sold for each year.
Chapter 5A Solutions
FINANCIAL ACCOUNTING CUSTOM PACKAGE
Ch. 5A - Berry Corporation miscounted the ending inventory...Ch. 5A - How would each of the following inventory errors...Ch. 5A - How would each of the following inventory errors...Ch. 5A - Ians Small Appliances reported cost of goods sold...Ch. 5A - Tire Pro Companys records reported the following...Ch. 5A - Matrix Company uses a periodic, weighted average...Ch. 5A - Paiges Office Paper Company uses a perpetual...
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