Effect of an inventory error-one year only
California Pool Supplies' inventory data for the year ended December 31, 2012, follow:
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Sales revenue
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$ 60,000
|
|
Cost of goods sold:
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|
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Beginning inventory
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$ 4,200
|
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Net purchases
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26,600
|
|
Cost of goods available
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$ 30,800
|
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Ending inventory
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(6,200)
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Cost of goods sold
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$ 24,600
|
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Gross profit
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$ 35,400
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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?