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Serggg [28]
3 years ago
5

The following two errors were made in the physical inventory counts: 1. 2018 ending inventory was understated by $8,000. 2. 2019

ending inventory was overstated by $4,000. Compute the correct cost of goods sold for both 2018 and 2019.
Business
1 answer:
elena-14-01-66 [18.8K]3 years ago
7 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The following two errors were made in the physical inventory counts: 1. 2018 ending inventory was understated by $8,000. 2. 2019 ending inventory was overstated by $4,000.

We were not provided with the relevant information to recalculate the cost of goods sold, but, I can provide the formula to solve the problem.

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

1- COGS= beginning finished inventory + cost of goods manufactured - (ending finished inventory + 8,000)

2- COGS= beginning finished inventory + cost of goods manufactured - (ending finished inventory - 4,000)

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Answer:

1. Depreciation expense for 2019(Straight-line)= (Cost of the assets - Salvage value) / life of the assets

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