Requirement 1. Assume that the ending merchandise inventory was accidentally overstated by $2,400. What are the correct amounts for cost of goods sold and gross profit for year ended December 31, 2026? Cost of goods sold in 2026 would be Inventory data Requirements 1. Assume that the ending merchandise inventory was accidentally overstated by $2,400. What are the correct amounts for cost of goods sold and gross profit for year ended December 31, 2026? 2. How would the inventory error affect Salt Lake Pool Supplies' cost of goods sold and gross profit for the year ended December 31, 2027, if the error is not corrected in 2026? Print Done Salt Lake Pool Supplies Income Statement (Partial) Year Ended December 31, 2026 Net Sales Revenue $ 60,000 Cost of Goods Sold: Beginning Merchandise Inventory $ 4,200 Plus: Net Cost of Inventory Purchased 26,600 Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold 30,800 6,200 24,600 $ Gross Profit 35,400

Requirement 1. Assume that the ending merchandise inventory was accidentally overstated by $2,400. What are the correct amounts for cost of goods sold and gross profit for year ended December 31, 2026? Cost of goods sold in 2026 would be Inventory data Requirements 1. Assume that the ending merchandise inventory was accidentally overstated by $2,400. What are the correct amounts for cost of goods sold and gross profit for year ended December 31, 2026? 2. How would the inventory error affect Salt Lake Pool Supplies' cost of goods sold and gross profit for the year ended December 31, 2027, if the error is not corrected in 2026? Print Done Salt Lake Pool Supplies Income Statement (Partial) Year Ended December 31, 2026 Net Sales Revenue $ 60,000 Cost of Goods Sold: Beginning Merchandise Inventory $ 4,200 Plus: Net Cost of Inventory Purchased 26,600 Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold 30,800 6,200 24,600 $ Gross Profit 35,400

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 7PB: Selected data on merchandise inventory, purchases, and sales for Jaffe Co. and Coronado Co. are as...

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Company Edgar reported the following cost of goods sold but later realized that an error had been made in ending inventory for year 2021. The correct inventory amount for 2021 was 12,000. Once the error is corrected, (a) how much is the restated cost of goods sold for 2021? and (b) how much is the restated cost of goods sold for 2022?
The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2019: a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2019, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 2019. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is the cost of ending inventory under FIFO at April 30? a. $32,500 b. $38,400 c. $63,600 d. $69,500
A physical count of merchandise inventory on December 31, 2013, revealed inventory costing 22,000. In the space below, list at least two possible reasons for this balance to be different from the estimate computed in requirement 3.
Goods in Transit Gravais Company made two purchases on December 29, 2019. One purchase for 3,000 was shipped FOB destination, and the second for 4,000 was shipped FOB shipping point. Neither purchase had been received nor paid for on December 31, 2019. Required: Which of these purchases, if either, does Gravais include in inventory on December 31, 2019? What is the cost?
Under the periodic inventory system, what account is debited when an estimate is made for the cost of merchandise inventory sold this year, but expected to be returned next year? (a) Estimated Returns Inventory (b) Sales Returns and Allowances (c) Merchandise Inventory (d) Customer Refunds Payable
The moving average inventory cost flow assumption is applicable to which of the following inventory systems? Questions M7-6 and M7-7 are based on the following data: City Stationers Inc. had 200 calculators on hand on January 1, 2019, costing 18 each. Purchases and sales of calculators during the month of January were as follows: City uses a periodic inventory system. According to a physical count, 150 calculators were on hand at January 31, 2019.
Jessie Stores uses the periodic system of calculating inventory. The following information is available for December of the current year when Jessie sold 500 units of inventory. Using the FIFO method, calculate Jessies inventory on December 31 and its cost of goods sold for December. RE7-11 Using the information from RE7-10, calculate Jessie Storess inventory on December 31 and its cost of goods sold for December using the LIFO method.
Beginning inventory, purchases, and sales for Item Zebra 9x are as follows: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on April 27 and (b) the inventory on April 30.
Borys Companys periodic inventory at December 31, 2019, is understated by 10,000, but purchases are correct. Johnson correctly values its 2020 ending inventory. What is the effect of this error on Boryss 2019 and 2020 financial statements?
Errors As controller of Lerner Company, which uses a periodic inventory system, you discover the following errors in the current year: 1. Merchandise with a cost of 17,500 was properly included in the final inventory, but the purchase was not recorded until the following year. 2. Merchandise purchases are in transit under terms of FOB shipping point. They have been excluded from the inventory, but the purchase was recorded in the current year on the receipt of the invoice of 4,300. 3. Goods out on consignment have been excluded from inventory. 4. Merchandise purchases under terms FOB shipping point have been omitted from the purchases account and the ending inventory. The purchases were recorded in the following year. 5. Goods held on consignment from Talbert Supply Co. were included in the inventory. Required: For each error, indicate the effect on the ending inventory and the net income for the current year and on the net income for the following year.
Selected data on merchandise inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows: Instructions 1. Determine the estimated cost of the merchandise inventory of Celebrity Tan Co. on August 31 by the retail method, presenting details of the computations. 2. a. Estimate the cost of the merchandise inventory of Ranchworks Co. on November 30 by the gross profit method, presenting details of the computations. b. Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that 369,750 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during March through November?