Solution-Compute the correct cost of goods sold for each

Compute the correct cost of goods sold for each year

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Reference no: EM131593110

Q1. Serebin Corn p any applied FIFO to its inventory and got the following results for its ending inventory.

Cameras - 112 units at a cost per unit of $63

Blu-ray players - 153 units at a cost per unit of $79

iPods - 136 units at a cost per unit of $86

The cost of purchasing units at year-end was cameras $83. Blu-ray players $51 and iPods $73.

Required - Determine the amount of ending inventory at lower-of-cost-or-market.

Q2. Hamid's Hardware reported cost of goods sold as follows.

Beginning inventory	$ 22,500	$30,500
Cost of goods purchased	151,500	194,000
Cost of goods available for sale	174,000	224,500
Ending inventory	30,500	36,500
Cost of goods sold	$143,500	$188,000

Hamid's made two errors: (1) 2016 ending inventory was overstated $3,400, and (2) 2017 ending inventory was understated $6,250.

Required - Compute the correct cost of goods sold for each year.

Reference no: EM131593110

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Compute the correct cost of goods sold for each year

Reference no: EM131593110

Reference no: EM131593110

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