2012
2011
Beginning inventory
$ 33,750
$ 23,200
Cost of goods purchased
175,760
170,850
Cost of goods available for sale
209,510
194,050
Less: Ending inventory
38,620
33,750
Cost of goods sold
$170,890
$160,300
Brooks made two errors:
1. 2011 ending inventory was overstated by $2,910.
2. 2012 ending inventory was understated by $3,640.
2012: i got 174530 (CGS-EI+3640)
2011: i got 157390 (CGS-EI-2910)
what my mistake is? why the answers are incorrect?
1 Answer
? Favorite Answer
I’m glad you posted this in another place. I can redeem myself for the math error I made when I answered it elsewhere.
Corrected Amounts
2011
Beginning inventory
$ 23,200
Cost of goods purchased
170,850
Cost of goods available for sale
194,050
Less: Ending inventory
30,840
Cost of goods sold
$163,210
2012
Beginning inventory
$ 30,840
Cost of goods purchased
175,760
Cost of goods available for sale
206,600
Less: Ending inventory
42,260
Cost of goods sold
$164,340
Source(s): Accounting Fan