Bamburgh Hardware reported cost of goods sold as follows. ________________________________ _ 2016 2017 Beginning inventory...................... 20,000............ 30,000
Question:
Bamburgh Hardware reported cost of goods sold as follows.
_________________________________ 2016 2017
Beginning inventory......................€ 20,000............€ 30,000
Cost of goods purchased..................150,000.............175,000
Cost of goods available for sale..........170,000.............205,000
Ending inventory...........................30,000...............35,000
Cost of goods sold......................€140,000............€170,000
Bamburgh made two errors: (1) 2016 Ending inventory was overstated €2,000, and (2) 2017 Ending inventory was understated €6,000.
Instructions
Compute the correct cost of goods sold for each year.
Ending InventoryThe ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
Step by Step Answer:
Beginning inventory Cost of goods purchased Cos...View the full answer
Financial Accounting
ISBN: 978-1118978085
IFRS 3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
