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    Merchandise Inventory - Calculating Cost of Goods Sold

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    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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    A B C
    Beginning inventory ...

    Solution Summary

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