Shamrock, Inc. reported these income statement data for a 2-year period 2017 201

Question

Shamrock, Inc. reported these income statement data for a 2-year period 2017 2016 Sales revenue Beginning inventory Cost of goods purchased Cost of goods available for sale $250,200 41,090 197,330 238,420 54,360 184,060 $66,140 $203,070 30,480 156,380 186,860 41,090 145,770 $57,300 Ending inventory Cost of goods sold Gross profit Shamrock, Inc. 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 $8,460

Explanation / Answer

Calculate Gross profit :

The cumulative effect on total gross profit for the two years is $ Nil

2016 2017 Sales 203070 250200 Cost of goods sold Beginning inventory 30480 32630 Cost of goods purchased 156380 197330 Cost of goods available for sale 186860 229960 Less: Ending inventory 32630 54360 Cost of goods sold 154230 175600 Gross profit 48840 74600

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.