Solution-Calculate the correct cost of goods sold for both

Calculate the correct cost of goods sold for both years

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Reference no: EM132597457

Question - Pete's Packaging reported its cost of goods sold as follows:

2014 2013

Beginning inventory $26,000 $19,000

Cost of goods purchased 195,000 168,000

Ending inventory (34,500) (26,000)

Cost of goods sold $186,500 $161,000

The ending inventory at September 30, 2013 was overstated by $6,500.

Instructions -

a. Calculate the correct cost of goods sold for both years.

b. Describe how the error has affected the financial statements for 2013 and for 2014, and for the two years combined.

Reference no: EM132597457

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Calculate the correct cost of goods sold for both years

Reference no: EM132597457

Reference no: EM132597457

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