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

<p><em><strong>As a result, company cost of goods sold for2009 was:</strong></em></p> <p><em><strong>a) Understated by $26,000.</strong></em></p> <p><em><strong>b) Overstated by $26,000.</strong></em></p> <p><em><strong>c) Understated by $78,000.</strong></em></p> <p><em><strong>d) Overstated by $78,000.</strong></em></p>

Accounting Financial Accounting
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Date Posted: 2014/10/11
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Ravshanbek Abdullaev
by Ravshanbek Abdullaev , Accountant , Fajr Al Mustaqbal General Trading LLC

understated by78000$

James Perez, CPA, CMA Candidate
by James Perez, CPA, CMA Candidate , Assistant Manager-Financial Planning and Analysis , Tupperware Brands Philippines

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

Khaled Ali
by Khaled Ali , Chief Accountant, CMA , New Vision Systems Co.

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.

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