Bramble Watch Company reported the following income statement data for a 2-year period. Sales revenue Cost...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Bramble Watch Company reported the following income statement data for a 2-year period. Sales revenue Cost of goods sold Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Gross profit 2022 $250,000 43,000 209,000 252,000 48,000 204,000 $46,000 2021 $220,000 32,000 177,000 209,000 43,000 166,000 $54,000 Bramble uses a periodic inventory system. The inventories at January 1, 2021, and December 31, 2022, are correct. However, the ending inventory at December 31, 2021, was overstated $6,000. Sales Cost of goods sold Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Gross profit $ GA $ CA 2022 250,000 43000 209,000 252000 42000 210,000 40,000 LA $ $ ԵԴ 2021 220,000 26000 177,000 203,000 43000 160,000 60,000 What is the cumulative effect of the inventory error on total gross profit for the 2 years? Cumulative effect of the inventory error $ Bramble Watch Company reported the following income statement data for a 2-year period. Sales revenue Cost of goods sold Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Gross profit 2022 $250,000 43,000 209,000 252,000 48,000 204,000 $46,000 2021 $220,000 32,000 177,000 209,000 43,000 166,000 $54,000 Bramble uses a periodic inventory system. The inventories at January 1, 2021, and December 31, 2022, are correct. However, the ending inventory at December 31, 2021, was overstated $6,000. Sales Cost of goods sold Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Gross profit $ GA $ CA 2022 250,000 43000 209,000 252000 42000 210,000 40,000 LA $ $ ԵԴ 2021 220,000 26000 177,000 203,000 43000 160,000 60,000 What is the cumulative effect of the inventory error on total gross profit for the 2 years? Cumulative effect of the inventory error $
Expert Answer:
Answer rating: 100% (QA)
2022 2021 Sales 250000 220000 Cost of goods sold Beginning inventory 37... View the full answer
Related Book For
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
Smart Watch Company reported the following income statement data for a 2-year period. Smart uses a periodic inventory system. The inventories at January 1, 2021, and December 31, 2022, are correct....
-
Rulix Watch Company reported the following income statement data for a 2-year period. Rulix uses a periodic inventory system. The inventories at January 1, 2013, and December 31, 2014, are correct....
-
Smart Watch Company reported the following income statement data for a 2-year period. Smart uses a periodic inventory system. The inventories at January 1, 2016, and December 31, 2017, are correct....
-
Given that log (2) 0.91 and log (5) 2.1, evaluate each of the following. Hint: use the properties of logarithms to rewrite the given logarithm in terms of the the logarithms of 2 and 5. a) log(0.4)~...
-
Why are common shares said to represent the residual interest in an entity?
-
A surety or guarantor is discharged from their obligation when the principal debtor pays the debt. (True/False)
-
How can increasing the effectiveness of labour improve both the productivity of labour and the productivity of capital?
-
Chan Corporation received a bank statement showing a balance of $14,700 as of October 31, 2016. The firm's records showed a book balance of $14,262 on October 31. The difference between the two...
-
Consider a perfectly competitive market with demand given by Qd=500 - 2P. Let there be 3 firms (indexed by i = 1,2,3), each with a cost function given by C(q) = 6qi + 1097. a) (5 points) Suppose that...
-
Kelly Consulting Post-Closing Trial Balance April 30, 20Y8 Account number Debit Credit Money 11 22,100 accounts receivable 12 3,400 supplies 14 1,350 prepaid rent 15 3,200 prepaid insurance sixteen...
-
Taylor Boat Yard produces and sells a line of small boats for recreational use. Production is a machine-intensive process, with the parts for each boat being manufactured on a series of machines run...
-
Given assemblage of 5 Springs (Figure 1), with stiffness: k = 105 N/m, k2 = 2x105 N/m, k3 = 3x105 N/m, k4 = 4x105 N/m, k5 = 5x105 N/m. These Springs are subjected to a load, P=1000 N at node 4....
-
A thunderstorm drops 1/4 in. of rain on a 50 mi area. The estimated number of fallen raindrops is O 100,000. O 106 O 10% O 107. O 107
-
The SI unit for pressure is the pascal (Pa), which is defined as: 1 Pa =1 N m In the US, a common unit of pressure is the Part A Convert 6.15 lbf 27,2 into N (Pa). lbf in 20 where lbf is the...
-
7. Mateo makes a spinning platform to do his air guitar performances on. If he has a mass of 80 kg and rotates like a single particle with a radius of 0.20 meters, how much work does he do if he goes...
-
a) If an E. Coli bacteria has a length of L = 2.20m from tip to tip and has a cylindrical diameter d of 0.40 m (as shown), what are the surface area and volume of the bacteria if it is shaped as a...
-
A corporation needs to raise $1,000,000 to finance a project.It can either float a bond for the amount at 10 percent annual rate of interest or sell preferred stock with an 8% dividend rate. The firm...
-
An example of prescriptive analytics is when an action is recommended based on previously observed actions. For example, an analysis might help determine procedures to follow when new accounts are...
-
Maria Contreras is the owner of a successful printing shop. Recently, her business has been increasing, and Maria has been thinking about changing the organization of her business from a...
-
Henley Company purchased a delivery truck. The total cash payment was $27,900, including the following items. Negotiated purchase price $24,000 Installation of special shelving 1,100 Painting and...
-
PepsiCos financial statements are presented in Appendix A. Financial statements of The Coca-Cola Company are presented in Appendix B. Instructions (a) Based on the information contained in these...
-
Read the article New pathways to business success from InTheBlack and answer the following questions. Required (a) Compare the entry requirements to become a full member of CPA Australia, CAANZ, and...
-
Read the following article from Chartered Accountants and answer the question that follows. Required Discuss the significance of intentional trust to the success of a professional services firm....
-
Read the article below and address the questions that follow. Required Assume you are a newly graduated marketing student. You recall from your studies that accounting plays a vital role in the...
Study smarter with the SolutionInn App