Merchandise Inventory - Calculating Cost of Goods Sold
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.