Sheridan 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 2022 Cost of goods sold $ $ 30,500 189,500 220,000 40,000 $180,000 Sheridan made two errors: 1.2021 ending inventory was overstated by $3,200. 2.2022 ending inventory was understated by $6,300. Compute the correct cost of goods sold for each year. 2022 2021 $ 25,000 153,500 178,500 30,500 $148,000 $ 2021

Sheridan 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 2022 Cost of goods sold $ $ 30,500 189,500 220,000 40,000 $180,000 Sheridan made two errors: 1.2021 ending inventory was overstated by $3,200. 2.2022 ending inventory was understated by $6,300. Compute the correct cost of goods sold for each year. 2022 2021 $ 25,000 153,500 178,500 30,500 $148,000 $ 2021

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 13PB: Company Edgar reported the following cost of goods sold but later realized that an error had been...

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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?
If a group of inventory items costing $3,200 had been double counted during the year-end inventory count, what impact would the error have on the following inventory calculations? Indicate the effect (and amount) as either (a) none, (b) understated $______, or (c) overstated $______. Table 10.2
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