Solution-Prepare correct income statement data for the two

Prepare correct income statement data for the two years

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Reference no: EM132707214

Question - Concord Corporation reported the following income statement data for a 2-year period.

	2018	2019
Sales revenue	$215,500	$252,000
Cost of goods sold Beginning inventory	32,000	44,500
Cost of goods purchased	174,500	203,000
Cost of goods available for sale	206,500	247,500
Ending inventory	44,500	55,000
Cost of goods sold	162,000	192,500
Gross profit	$53,500	$59,500

Concord Corporation uses a periodic inventory system. The inventories at January 1, 2018, and December 31, 2019, are correct. However, the ending inventory at December 31, 2018, was overstated $6,000.

Required -

1. Prepare correct income statement data for the 2 years.

2. What is the cumulative effect of the inventory error on total gross profit for the 2 years?

Reference no: EM132707214

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Prepare correct income statement data for the two years

Reference no: EM132707214

Reference no: EM132707214

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