Question
In: Accounting
Errors in Inventory Counts The following information was taken from the records of Taylor Enterprises: 2013...
Errors in Inventory Counts The following information was taken from the records of Taylor Enterprises:
| 2013 | 2012 | |
|---|---|---|
| Beginning inventory | $70,000 | $60,000 |
| Cost of goods purchased | 430,000 | 410,000 |
| Cost of goods available for sale | 500,000 | 470,000 |
| Ending inventory | 65,000 | 70,000 |
| Cost of goods sold | $435,000 | $400,000 |
The following two errors were made in the physical inventory
counts:
1. 2012 ending inventory was understated by $10,000.
2. 2013 ending inventory was overstated by $5,000.
Compute the correct cost of goods sold for both 2012 and 2013.
| 2013 | 2012 | |
|---|---|---|
| Cost of goods sold | $ Answer | $ Answer |
Solutions
Expert Solution
| 2013 | 2012 | |
| Beginning Inventory(Corrected Balance) | $ 80,000 | $ 60,000 |
| Cost of goods purchased | $ 430,000 | $ 410,000 |
| Cost of goods available for sale | $ 510,000 | $ 470,000 |
| Ending Inventory(Corrected Balance) | $ 60,000 | $ 80,000 |
| Cost of goods sold(Corrected) | $ 450,000 | $ 390,000 |
ekkarill92 answered 1 year agoRelated Solutions
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The following information is taken from the inventory records of
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3,000
units @ $11.00
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units @ $11.50
Sales:
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4,000
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9/29
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1.
The following inventory information was taken from the records
of GlobeKom Ltd:
Historical cost
$12,000
Replacement cost
$9,000
Expected selling price
$10,000
Expected selling cost
$1,500
Normal profit margin
10% of selling price
Under U.S. GAAP, what should be the impairment loss for
inventory (assuming LCM method is used)?
A.
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B.
$3,500
C.
$2,000
D.
$1,500
2.
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Replacement cost
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Purchases of raw materials ..................................
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Manufacturing overhead ......................................
$160,000
Advertising expense .............................................
$180,000
Sales salaries
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Depreciation, office equipment ............................
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Purchases of raw materials ..................................
$236,000
Manufacturing overhead ......................................
$160,000
Advertising expense .............................................
$180,000
Sales salaries
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$100,000
Depreciation, office equipment ............................
$6,000
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Work in process .......................... $20,000 $10,000
Finished goods ............................ $40,000 $70,000
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The following cost and inventory data are taken from the
accounting records of Mason Company for the
year just completed:
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Direct labor cost
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Purchases of raw materials ..................................
$118,000
Manufacturing overhead ......................................
$80,000
Advertising expense .............................................
$90,000
Sales salaries
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$50,000
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$3,000
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Units
Unit Cost
Total Cost
Beginning inventory
March 1
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$10.00
$150
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March 5
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March 10
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—
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