The following information was taken from the records of Taylor Enterprises: Year 2 Year 1 Beginning...

 

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The following information was taken from the records of Taylor Enterprises: Year 2 Year 1 Beginning inventory $60,000 $50,000 Cost of goods purchased 420,000 400,000 Cost of goods available for sale 480,000 450,000 Ending inventory 55,000 60,000 Cost of goods sold $425,000 $390,000 The following two errors were made in the physical inventory counts: 1. Year 1 ending inventory was understated by $10,000. 2. Year 2 ending inventory was overstated by $5,000. Compute the correct cost of goods sold for both years. Cost of goods sold $ Year 2 0x $ Year 1 0 x 4 The following information was taken from the records of Taylor Enterprises: Year 2 Year 1 Beginning inventory $60,000 $50,000 Cost of goods purchased 420,000 400,000 Cost of goods available for sale 480,000 450,000 Ending inventory 55,000 60,000 Cost of goods sold $425,000 $390,000 The following two errors were made in the physical inventory counts: 1. Year 1 ending inventory was understated by $10,000. 2. Year 2 ending inventory was overstated by $5,000. Compute the correct cost of goods sold for both years. Cost of goods sold $ Year 2 0x $ Year 1 0 x 4

Answer rating: 100% (QA)

To compute the correct cost of goods sold for both years we need to adjust the ending ... View the full answer