Assignment Print Vi Hull Company reported the following income statement informa

Question

Assignment Print Vi Hull Company reported the following income statement information for the current year Sales Cost of goods sold: Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold s 413,000 $ 136,500 276,000 412,50o 265,50O $ 147,500 147,000 Gross profit The beginning inventory $23,000. Given this information, the correct gross profit would balance is correct. However, the ending inventory figure was overstated be: O $124,500. O $147,500 O $170,500 o $137,500. O $113,500

Explanation / Answer

CALCULATION OF THE CORRECT GROSS PROFIT Sales $                  4,13,000 Cost of Goods sold: Beginning invenotry $                  1,36,500 Cost of Goods Purchased $                  2,76,000 Cost of Goods Available For Sales $                  4,12,500 Ending inventory ( $ 147,000 - $ 23,000) $                  1,24,000 Cost of Goods Sold $                  2,88,500 Gross Profit (Sales - Cost of Goods Sold) $                  1,24,500 Answer = Option 1 = $ 124,500

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