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Exercise 6-16 Waterway Industries reported cost of goods sold as follows. 2017 2

ID: 2543464 • Letter: E

Question

Exercise 6-16

Waterway Industries reported cost of goods sold as follows.

2017

2016

$ 31,730

$ 21,270

164,530

169,130

196,260

190,400

39,380

31,730

$156,880

$158,670


Waterway Industries made two errors:


Compute the correct cost of goods sold for each year.

2017

2016

Beginning inventory

$ 31,730

$ 21,270

Cost of goods purchased

164,530

169,130

Cost of goods available for sale

196,260

190,400

Less: Ending inventory

39,380

31,730

Cost of goods sold

$156,880

$158,670

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Explanation / Answer

Calculate compute cost of goods sold :

2017 2016 Beginning inventory 29630 21270 Cost of goods purchased 164530 169130 Cost of goods available for sale 194160 190400 Less; Ending inventory 44520 29630 Cost of goods sold 149640 160770