Question

8. The Shirley's Gourmet Foods' merchandise inventory data for the year ended December 31, 2018, follow: (Click the icon to view the data.) Assume that the ending merchandise inventory was accidentally overstated by $1,800. What are the correct amounts for cost of goods sold and gross profit? Assuming that the ending merchandise inventory was accidentally overstated by $1,800, the correct amount for cost of goods sold is $ Assuming that the ending merchandise inventory was accidentally overstated by $1,800, the correct amount for gross profit is i Data Table x Sales Revenue $ 60,000 Cost of Goods Sold: Beginning Merchandise Inventory 3,890 20,000 Net Cost of Purchases 23,890 5,500 Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold 18,390 41,610 Gross Profit

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

A Н Answer 2 BPart 1) 4 If the endinginventory is overstated by $1800, then the correct cost of goods sold earlier cost of goods sold + ending inventory overstated amount = 18390+1800 7 $20190 В 9Thus the correct answer =$ 20190 LO 1 Part 2) 2 The correct amount of gross profit =sales correct amount of cost of goods sold 3 4 = 60000-20190 .5$39810 6 7 Thus the correct answer is $ 39810 8 9