Beginning inventory at January 1, 2009, was understated by $26,000, and its ending inventory was overstated by $52,000.

Question

As a result, company cost of goods sold for2009 was:

a) Understated by $26,000.

b) Overstated by $26,000.

c) Understated by $78,000.

d) Overstated by $78,000.

Deleted user · Answer

Answer C is correct

Ravshanbek Abdullaev · Answer

understated by78000$

James Perez, CPA, CMA Candidate · Answer

b) Overstated by $26,000. Ending Inventory in2009 is understated, therefore2009's Cost of Goods Sold is overstated.

Khaled Ali · Answer

d) Overstated by $78,000.

Cost of good sold (52,000 Overstated +26,000 Understated).

during2009 COGS covered26,000 understated beginning inventory balance and ended at balance of52,000 overstated inventory balance.