Skysong, Inc. reported these income statement data for a 2-year period. 2022 2021 Sales revenue $255,500 $217,500 Beginning inventory 45,000 32,000 Cost of goods purchased 207,000 189,000 Cost of goods available for sale 252,000 221,000 Less: Ending inventory 55,000 45,000 Cost of goods sold 197,000 176,000 Gross profit $58,500 $41,500 Skysong, Inc. uses a periodic inventory system. The inventories at January 1, 2021, and December 31, 2022, are correct. However, the ending inventory at December 31, 2021, is overstated by $5,000.

Skysong, Inc. reported these income statement data for a 2-year period. 2022 2021 Sales revenue $255,500 $217,500 Beginning inventory 45,000 32,000 Cost of goods purchased 207,000 189,000 Cost of goods available for sale 252,000 221,000 Less: Ending inventory 55,000 45,000 Cost of goods sold 197,000 176,000 Gross profit $58,500 $41,500 Skysong, Inc. uses a periodic inventory system. The inventories at January 1, 2021, and December 31, 2022, are correct. However, the ending inventory at December 31, 2021, is overstated by $5,000.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 67P

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