. Hull Company reported the following income statement information for 2015: 201
ID: 2454787 • Letter: #
Question
. Hull Company reported the following income statement information for 2015:
2015
Sales
$410,000
Cost of goods sold:
Beginning inventory
$132,000
Cost of goods purchases
273,000
Cost of goods available for sale
405,000
Ending inventory
144,000
Cost of goods sold
261,000
Gross profit
$149,000
The beginning inventory balance for 2015 is correct. However, the ending inventory figure for 2015 was overstated by $20,000. Given this information, the correct gross profit figure for 2015 would be:
A.
$149,000.
B.
$169,000.
C.
$129,000.
D.
$142,000.
E.
$112,000.
2015
Sales
$410,000
Cost of goods sold:
Beginning inventory
$132,000
Cost of goods purchases
273,000
Cost of goods available for sale
405,000
Ending inventory
144,000
Cost of goods sold
261,000
Gross profit
$149,000
Explanation / Answer
C.
$129,000.
(Sales+Ending inventory-Cost of goods purchases+Ending inventory)
=$410000+$124000-$273000-$132000
=$129000
C.
$129,000.
(Sales+Ending inventory-Cost of goods purchases+Ending inventory)
=$410000+$124000-$273000-$132000
=$129000
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