Waterway industries reported cost of goods sold

Assignment Help Financial Accounting

Reference no: EM131287807

Waterway Industries reported cost of goods sold as follows. 2017 2016 Beginning inventory $ 31,730 $ 21,270 Cost of goods purchased 164,530 169,130 Cost of goods available for sale 196,260 190,400 Less: Ending inventory 39,380 31,730 Cost of goods sold $156,880 $158,670 Waterway Industries made two errors: 1. 2016 ending inventory was overstated by $2,100. 2. 2017 ending inventory was understated by $5,140. Compute the correct cost of goods sold for each year. 2016: 2017:

Reference no: EM131287807

Questions Cloud

Order discharging the personal representative : If no federal estate tax return is required of the decedent's estate a. the Section 645 election is not available. b. the Section 645 election period begins on date of death. c. the Section 645 election period ends when the local probate court enters..

Income tax deduction for distributions to beneficiaries : Tom is the trustee of the Generous Trust. The trust agreement directs the trustee to pay all net fiduciary accounting at least annually to Ms. Behaven. During 2013 the trust earned $10,000 of net fiduciary accounting income, consisting of taxable bon..

Necessary to account for private placement and the call : Y Ltd is listed on the Australian Securities Exchange. On 1 January 2015, Y Ltd invited Madi Ltd to purchase 700 000 shares at $2.50 per share. At the time of accepting the offer, Madi Ltd only had cash resources available of $900 000. Provide the jo..

Analyze the various methods of depreciation : Analyze the various methods of depreciation and provide an opinion on which method is better for a company to use. Also, compare and contrast the depreciation methods. Discuss the advantages and disadvantages of each method. How does each method affe..

Waterway industries reported cost of goods sold : Waterway Industries reported cost of goods sold as follows. 2017 2016 Beginning inventory $ 31,730 $ 21,270 Cost of goods purchased 164,530 169,130 Cost of goods available for sale 196,260 190,400 Less: 2016 ending inventory was overstated by $2,100...

One area of particular concern is the inventory account : Umatilla Bank and Trust is considering giving Shamrock, Inc. a loan. Before doing so, it decides that further discussions with Shamrock, Inc.’s accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end..

Calculate the days in inventory-inventory turnover : Suppose at December 31 of a recent year, the following information (in thousands) was available for sunglasses manufacturer Oakley Inc.: ending inventory $153,244; beginning inventory $111,964; cost of goods sold $324,929 and sales revenue $803,091. ..

What are the key estimates used in capm : To CAPM or not to CAPM – that is the question. CAPM is a valuable tool that often comes under fire for all the estimates it relies upon. What are the key estimates used in CAPM? Why is this measure so harshly criticized? Do you agree with the critics..

Compute the cost of ending inventory under fifo method : In its first month of operations, Marigold Corp. made three purchases of merchandise in the following sequence: (1) 240 units at $5, (2) 340 units at $7, and (3) 440 units at $8. Assuming there are 140 units on hand at the end of the period, compute ..

User Account

All Pages