2017 2016 $258,600 $213,690 38,940 33,680 215,850 178,720 254,790 212,400 54,600
ID: 2490203 • Letter: 2
Question
2017
2016
$258,600
$213,690
38,940
33,680
215,850
178,720
254,790
212,400
54,600
38,940
200,190
173,460
$58,410
$40,230
Sheridan Company reported these income statement data for a 2-year period.2017
2016
Sales revenue$258,600
$213,690
Beginning inventory38,940
33,680
Cost of goods purchased215,850
178,720
Cost of goods available for sale254,790
212,400
Less: Ending inventory54,600
38,940
Cost of goods sold200,190
173,460
Gross profit$58,410
$40,230
Sheridan Company uses a periodic inventory system. The inventories at January 1, 2016, and December 31, 2017, are correct. However, the ending inventory at December 31, 2016, is overstated by $8,260.
Explanation / Answer
Solution 2017 2016 $ $ Sales Revenue 2,58,600.00 2,13,690.00 Cost of goods sold Beginning Inventory 30,680.00 33,680.00 Cost of purchased 2,15,850.00 1,78,720.00 Cost of goods available for sale 2,46,530.00 2,12,400.00 Less:Ending inventory 54,600.00 30,680.00 Cost of goods sold 1,91,930.00 1,81,720.00 Gross Profit 66,670.00 31,970.00 The commulative effect on total gross profit for the two years is 0.
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