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# Merchandise Inventory - Calculating Cost of Goods Sold

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MERC HANDISE INVENTORY

Chinger Company sells three products. The following information is available for the three products.
P Q R
Beginning inventory \$15,000 \$27,000 \$15,000
Purchases 45,000 65,000 62,000
Goods available for sale 60,000 95,000 77,000
Ending inventory 18,000 13,000 9,000
Cost of goods sold \$42,000 \$79,000 \$68,000

Chinger's accountant has discovered the following errors:

a. Ending inventory for product P was overstated by \$6,700.
b. Ending inventory for product Q was understated by \$4,200.
c. Beginning inventory for product R was overstated by \$2,020.

Recalculate cost of goods sold for each product.

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SOLUTION

A B C
Beginning inventory ...

#### Solution Summary

Merchandise Inventory - Correcting Errors in the Calculation of Cost of Goods Sold.

\$2.19