# Math

posted by Angie

Staley Watch Company reported the following income statement data for a 2-year period.
2008 2009
Sales \$210,000 \$250,000
Cost of goods sold
Beginning inventory 32,000 44,000
Cost of goods purchased 173,000 202,000
Cost of goods available for sale 205,000 246,000
Ending inventory 44,000 52,000
Cost of goods sold 161,000 194,000
Gross profit \$ 49,000 \$ 56,000
Staley uses a periodic inventory system. The inventories at January 1, 2008, and December 31,
2009, are correct. However, the ending inventory at December 31, 2008, was overstated \$5,000.
Instructions
(a) Prepare correct income statement data for the 2 years.
(b) What is the cumulative effect of the inventory error on total gross profit for the 2 years?

## Similar Questions

1. ### Cost Accounting

Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows. Case 1 2 Direct Materials Used \$ 8,300 (g) Direct Labor 3,000 \$ 4,000 Manufacturing Overhead 6,000 5,000 Total Manufacturing Costs (a) …
2. ### accounting

The following financial data were taken from the annual financial statements of Smith corporation: 2007 2008 2009 Current assets \$450,000 \$400,000 \$500,000 Current liabilities \$390,000 \$300,000 \$340,000 Sales \$1,450,000 \$1,500,000 …
3. ### accounting

The following transactions occurred during March 2009 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 30,000 shares of common stock in exchange for \$300,000 in cash. 2. Purchased equipment …
4. ### accounting

Fill in the blanks in the following separate income statements a through e. Identify any negative amount by putting it in parentheses. a b c d e Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$60,000 \$42,500 …
5. ### accounting

E15-7 Bennis Company has the following comparative balance sheet data. BENNIS COMPANY Balance Sheets December 31 2009 2008 Cash \$ 15,000 \$ 30,000 Receivables (net) 70,000 60,000 Inventories 60,000 50,000 Plant assets (net) 200,000 …
6. ### accounting

The following financial data were taken from the annual financial statements of Smith corporation: 2007 2008 2009 Current assets \$450,000 \$400,000 \$500,000 Current liabilities \$390,000 \$300,000 \$340,000 Sales \$1,450,000 \$1,500,000 …
7. ### accounting

Westchase Supplies reported sales of \$5,000,000, cost of goods sold of \$3,200,000, operating expenses of \$1,400,000 and income tax expense of \$160,000 for the year What was the company’s net income for the year?
8. ### Accounting 9

The following information is available for Baker Industries: Cost of goods manufactured \$320,000 Beginning finished goods inventory \$45,000 Ending finished goods inventory \$35,000 Compute the cost of goods sold.
9. ### Accounting 9

The following information is available for Baker Industries: Cost of goods manufactured \$320,000 Beginning finished goods inventory \$45,000 Ending finished goods inventory \$35,000 Compute the cost of goods sold.
10. ### Accounting 9

The following information is available for Baker Industries: Cost of goods manufactured \$320,000 Beginning finished goods inventory \$45,000 Ending finished goods inventory \$35,000 Compute the cost of goods sold.

More Similar Questions