Problem concerning beginning inventory balance


Question: Ace Company reported the following information for the current year: Sales $ 410, 000 Cost of goods sold: Beginning inventory $ 132, 000 Cost of goods purchased 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 is correct. However, the ending inventory figure was overstated by $20,000. Given this information, the correct gross profit would be: Multiple Choice O $169,000. $129,000. $149,000. O $142,000.

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Accounting Basics: Problem concerning beginning inventory balance
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