A company has the following information about its inventory and sales for the year ended December 31,
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Question:
A company has the following information about its inventory and sales for the year ended December 31, 2022:
- Beginning inventory: $100,000
- Purchases: $600,000
- Ending inventory: $120,000
- Cost of goods sold: $580,000
- Sales revenue: $900,000
As an auditor, you are required to perform an analytical review of the company's cost of goods sold for the year ended December 31, 2022, and determine if it appears reasonable. Use appropriate calculations and ratios to support your conclusion.
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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