Compute ending inventory at September 30 using FIFO, LIFO, and moving-average. (Note: For moving-average, round unit cost to three decimal places.) Determine effects of inventory errors. *E6.18 (LO 5), AN Dowell Hardware 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 2025 $30,000 175,000 205,000 37,000 $168,000 2024 $20,000 164,000 184,000 30,000 $154,000 Dowell made two errors: 1. 2024 ending inventory was overstated by $2,000. 2. 2025 ending inventory was understated by $5,000. Instructions Compute the correct cost of goods sold for each year. Prepare correct income statements.

Compute ending inventory at September 30 using FIFO, LIFO, and moving-average. (Note: For moving-average, round unit cost to three decimal places.) Determine effects of inventory errors. *E6.18 (LO 5), AN Dowell Hardware 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 2025 $30,000 175,000 205,000 37,000 $168,000 2024 $20,000 164,000 184,000 30,000 $154,000 Dowell made two errors: 1. 2024 ending inventory was overstated by $2,000. 2. 2025 ending inventory was understated by $5,000. Instructions Compute the correct cost of goods sold for each year. Prepare correct income statements.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 67APSA: Inventory Costing Methods Andersons Department Store has the following data for inventory,...

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