Lucia Company reported cost of goods sold for Year 1 and Year 2 as follows: Year...
Lucia Company reported cost of goods sold for Year 1 and Year 2
as follows:
| Year 1 | Year 2 | |||||
| Beginning inventory | $ | 120,000 | $ | 130,000 | ||
| Cost of goods purchased | 250,000 | 275,000 | ||||
| Cost of goods available for sale | 370,000 | 405,000 | ||||
| Ending inventory | 130,000 | 135,000 | ||||
| Cost of goods sold | $ | 240,000 | $ | 270,000 | ||
Lucia Company made two errors: 1) ending inventory at the end of
Year 1 was understated by $15,000 and 2) ending inventory at the
end of Year 2 was overstated by $6,000. Given this information, the
correct cost of goods sold figure for Year 2 would be:
Multiple Choice
-
$276,000
-
$291,000
-
$249,000
-
$264,000
-
$285,000
Homework Answers
| Correct option is: B. $291,000 | ||
| Workings: | Year 2 | |
| Cost of Goods sold | $ 2,70,000 | |
| Adjustments: | ||
| Add: | Beginning Inventory understated | $ 15,000 |
| Add: | Ending Inventory overstated | $ 6,000 |
| Adjusted Cost of goods sold | $ 2,91,000 |
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Lucia Company reported cost of goods sold for Year 1 and Year 2
as follows:
Year...
Lucia Company reported cost of goods sold for Year 1 and Year 2 as follows: Beginning...
Lucia Company reported cost of goods sold for Year 1 and Year 2 as follows: Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Year 1 $125,000 251,000 376,000 131,000 $245,000 Year 2 $131,000 280,000 411,000 136,000 $275,000 (8 02:518 Lucia Company made two errors: 1) ending inventory at the end of Year 1 was understated by $16,000 and 2) ending inventory at the end of Year 2 was overstated by...
Bramble Corp. reported cost of goods sold as follows. Beginning inventory Cost of goods purchased Cost...
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If the beginning inventory is overstated: 1.the current ratio is overstated. 2.cost of goods sold is...
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Exercise 6-16 Marigold Corp. reported cost of goods sold as follows. 2022 2021 Beginning inventory $...
Exercise 6-16
Marigold Corp. reported cost of goods sold as follows.
2022
2021
Beginning inventory
$ 29,180
$ 21,350
Cost of goods purchased
190,730
176,290
Cost of goods available for sale
219,910
197,640
Less: Ending inventory
37,500
29,180
Cost of goods sold
$182,410
$168,460
Marigold Corp. made two errors:
1.
2021 ending inventory was overstated by $1,890.
2.
2022 ending inventory was understated by $5,160.
Compute the correct cost of goods sold for each year.
2021
2022
The correct cost...
1. FIFO tends to increase cost of goods sold when: A. costs are constant B. costs...
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QUESTION 2 An error in the physical count of goods on hand at the end of...
QUESTION 2 An error in the physical count of goods on hand at the end of a period resulted in a $10,000 overstatement of the ending inventory. The effect of this error in the current period is Cost of Goods Sold Understated Net Income Understated Cost of Goods Sold Overstated Net Income Overstated Cost of Goods Sold Understated Net Income Overstated Cost of Goods Sold Overstated Net Income Understated
Question 2 Determine the effect on cost of goods sold, total assets, and gross margin for...
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Hull Company reported the following income statement information for the current year: Sales $ 416,000 Cost...
Hull Company reported the following income statement information for the current year: Sales $ 416,000 Cost of goods sold: Beginning inventory $ 141,000 Cost of goods purchased 279,000 Cost of goods available for sale 420,000 Ending inventory 150,000 Cost of goods sold 270,000 Gross profit $ 146,000 The beginning inventory balance is correct. However, the ending inventory figure was overstated by $26,000. Given this information, the correct gross profit would be:
Lucia Company reported cost of goods sold for Year 1 and Year 2 as follows: Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Year 1 $125,000 251,000 376,000 131,000 $245,000 Year 2 $131,000 280,000 411,000 136,000 $275,000 (8 02:518 Lucia Company made two errors: 1) ending inventory at the end of Year 1 was understated by $16,000 and 2) ending inventory at the end of Year 2 was overstated by...
Bramble Corp. reported cost of goods sold as follows. Beginning inventory Cost of goods purchased Cost of goods available for sale Less: Ending inventory Cost of goods sold 2022 $ 28,810 174,650 203,460 38,450 $165,010 2021 $ 21,540 151,520 173,060 28.810 $144,250 Bramble Corp. made two errors: 1. 2. 2021 ending inventory was overstated by $1,860. 2022 ending inventory was understated by $5,490. Compute the correct cost of goods sold for each year. 2021 2022 The correct cost of goods...
Cullumber's Hardware uses the periodic inventory system and reported cost of goods sold as follows. 2018 2019 Beginning inventory $ 20,000 150,000 $30,000 175,000 Cost of goods purchased Cost of goods available for sale 170,000 205,000 Ending inventory 30,000 35,000 Cost of goods sold $140,000 $170,000 Cullumber's made two errors: (1) 2018 ending inventory was overstated $3,100, and (2) 2019 ending inventory was understated $6,100. Compute the correct cost of goods sold for each year, 2018 2019 Cost of goods...
Exercise 6-16
Marigold Corp. reported cost of goods sold as follows.
2022
2021
Beginning inventory
$ 29,180
$ 21,350
Cost of goods purchased
190,730
176,290
Cost of goods available for sale
219,910
197,640
Less: Ending inventory
37,500
29,180
Cost of goods sold
$182,410
$168,460
Marigold Corp. made two errors:
1.
2021 ending inventory was overstated by $1,890.
2.
2022 ending inventory was understated by $5,160.
Compute the correct cost of goods sold for each year.
2021
2022
The correct cost...
QUESTION 2 An error in the physical count of goods on hand at the end of a period resulted in a $10,000 overstatement of the ending inventory. The effect of this error in the current period is Cost of Goods Sold Understated Net Income Understated Cost of Goods Sold Overstated Net Income Overstated Cost of Goods Sold Understated Net Income Overstated Cost of Goods Sold Overstated Net Income Understated
Question 2 Determine the effect on cost of goods sold, total assets, and gross margin for 2015 and 2016 if the following inventory errors are not corrected. Indicate your answer with (+) for overstated, (-) for understated, and (0) for no effect. Beginning inventory for 2015 is understated. Ending inventory for 2015 is understated. Cost of Goods Sold Effect in 2015 on Total Assets Gross Margin Cost of Goods Sold Gross Margin Effect in 2016 on Total Assets
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