Question 8

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Windsor, Inc. reported these income statement data for a 2-year period.

		2022		2021
Sales revenue		$229,900		$224,080
Beginning inventory		38,870		29,140
Cost of goods purchased		193,740		184,640
Cost of goods available for sale		232,610		213,780
Less: Ending inventory		59,250		38,870
Cost of goods sold		173,360		174,910
Gross profit		$56,540		$49,170

Windsor, Inc. 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, is overstated by $7,840.Prepare correct income statement data for the 2 years.

			2021		2022
Sales			$enter a dollar amount		$enter a dollar amount
Cost of goods sold
Beginning inventory			enter a dollar amount		enter a dollar amount
Cost of goods purchased			enter a dollar amount		enter a dollar amount
Cost of goods available for sale			enter a dollar amount		enter a dollar amount
Less:	Ending inventory		enter a dollar amount		enter a dollar amount
	Cost of goods sold		enter a dollar amount		enter a dollar amount
Gross profit			$enter a dollar amount		$enter a dollar amount

Question 7 View Policies Current Attempt in Progress Novak Corp. sells coffee beans, which are sensitive to price fluctuations. The following inventory information is available for this product at December 31, 2022. Unit Cost Market Coffee Bean Units Net Realizable Value $5.30 $5.27 Coffea arabica Coffea robusta 13,500 bags 4,200 bags 3.40 3.50 Calculate Novak's inventory by applying the lower-of-cost-or-market basis. Novak's inventory $