Effect of an inventory error—one year only California Pool Supplies’ inventory data for the year ended December 31, 2012, follow:
|
Sales revenue |
$ 60,000 |
|
Cost of goods sold: |
|
|
Beginning inventory |
$ 4,200 |
|
Net purchases |
26,600 |
|
Cost of goods available |
$ 30,800 |
|
Ending inventory |
(6,200) |
|
Cost of goods sold |
$ 24,600 |
|
Gross profit |
$ 35,400 |
Assume that the ending inventory was accidentally overstated by $2,400.
Requirement
1. What are the correct amounts for cost of goods sold and gross profit?