Homework Answers
1) given that 2018 ending inventory was understated by$8000, therefore to rectify it
We should increase both 2018 ending inventory and 2019 beginning inventory
2018 ending inventory=$60000+$8000=$68000
2019 beginning inventory= $60000+$8000= $68000
2) given that 2019 ending inventory was overstated by$4000, therefore to rectify it we should decrease 2019 ending inventory
2019ending inventory= $55000 - $4000= $51000
| Particular | 2019 | 2018 |
| Beginning inventory | $68000 | $50000 |
| Cost of goods purchased | $420000 | $400000 |
| Cost of goods available for sale | $488000 | $450000 |
| (-) ending inventory | ($51000) | ($68000) |
| Cost of goods sold | $437000 | $382000 |
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