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Driole Company reported the following income statement data for a 2-year period. 2019 2020 $211,500 $251,000 Sales revenue Cost of goods sold Beginning inventory 34,000 44,000 Cost of goods purchased 180,500 216,500 Cost of goods available for sale 214,500 260,500 Ending inventory 44,000 55,000 Cost of goods sold 170,500 205,500 Gross profit $41,000 $45,500 Oriole uses a periodic inventory system. The inventories at January 1, 2019, and December 31, 2020, are correct. However, the ending inventory at December 31, 2019, was overstated $6,000.

Driole Company reported the following income statement data for a 2-year period. 2019 2020 $211,500 $251,000 Sales revenue Cost of goods sold Beginning inventory 34,000 44,000 Cost of goods purchased 180,500 216,500 Cost of goods available for sale 214,500 260,500 Ending inventory 44,000 55,000 Cost of goods sold 170,500 205,500 Gross profit $41,000 $45,500 Oriole uses a periodic inventory system. The inventories at January 1, 2019, and December 31, 2020, are correct. However, the ending inventory at December 31, 2019, was overstated $6,000.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 8MC: At December 31, 2019, the following information was available from Crisford Companys books: Sales...
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Driole Company reported the following income statement data for a 2-year period. 2019 2020 $211,500 $251,000 Sales revenue Cost of goods sold Beginning inventory 34,000 44,000 Cost of goods purchased 180,500 216,500 Cost of goods available for sale 214,500 260,500 Ending inventory 44,000 55,000 Cost of goods sold 170,500 205,500 Gross profit $41,000 $45,500 Oriole uses a periodic inventory system. The inventories at January 1, 2019, and December 31, 2020, are correct. However, the ending inventory at December 31, 2019, was overstated $6,000.
Transcribed Image Text:Driole Company reported the following income statement data for a 2-year period. 2019 2020 $211,500 $251,000 Sales revenue Cost of goods sold Beginning inventory 34,000 44,000 Cost of goods purchased 180,500 216,500 Cost of goods available for sale 214,500 260,500 Ending inventory 44,000 55,000 Cost of goods sold 170,500 205,500 Gross profit $41,000 $45,500 Oriole uses a periodic inventory system. The inventories at January 1, 2019, and December 31, 2020, are correct. However, the ending inventory at December 31, 2019, was overstated $6,000.
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