Pete's Packaging reported its cost of goods sold as follows: The ending inventory at September 30, 2013 was overstated by $6,500.
Instructions
a. Calculate the correct cost of goods sold for both years.
b. Describe how the error has affected the financial statements for 2013 and for 2014, and for the two years combined.

Question

Pete's Packaging reported its cost of goods sold as follows:  The ending inventory at September 30, 2013 was overstated by $6,500.
Instructions 
a. Calculate the correct cost of goods sold for both years.
b. Describe how the error has affected the financial statements for 2013 and for 2014, and for the two years combined.

Quizplus · Accepted Answer

The Answer of Pete's Packaging reported its cost of goods sold as follows:  The ending inventory at September 30, 2013 was overstated by $6,500.
Instructions 
a. Calculate the correct cost of goods sold for both years.
b. Describe how the error has affected the financial statements for 2013 and for 2014, and for the two years combined.

Pete's Packaging Reported Its Cost of Goods Sold as Follows