Lebo Hardware reported the cost of goods sold as follows: 2008 2009 150,170 176,

Question

Lebo Hardware reported the cost of goods sold as follows:

2008

2009

150,170

176,650

33,960

38,600

$140,770

$172,010

Lebo made two errors: (1) 2008 ending inventory was overstatedby $3,450 and (2) 2009 ending inventory was understated $6,470.

Instructions

Compute the correct cost of goods sold for each year.

2008

2009

Beginning Inventory $24,560 $33,960 Cost of goods purchased

150,170

176,650

Cost of goods available for sale 174,730 210,610 Ending inventory

33,960

38,600

Cost of goods sold

$140,770

$172,010

Explanation / Answer

Lebo Hardware reported the cost of goods sold asfollows:

2008(Old)

2009(Old)

150,170

176,650

33,960

38,600

$140,770

$172,010

Compute the correct cost of goods sold for each year.

2008(Old)

2008
(Revised)         

2009(Old)

  2009(Revised)   Beginning Inventory $24,560 $24,560 $33,960 $30,510 Cost of goods purchased

150,170

$150,170

176,650

$176,650 Cost of goods available for sale 174,730 $174,730 210,610 $207,160 Ending inventory

33,960

$30,510

38,600

$45,070 Cost of goods sold

$140,770

$144,220

$172,010

$162,090

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