Question
Burkhanov Hardware Ltd. in Tashkent, Uzbekistan reported cost of goods sold as follows. (Currency in Uzbekistan...
- Burkhanov Hardware Ltd. in Tashkent, Uzbekistan reported cost of goods sold
as follows. (Currency in Uzbekistan s’om, UZS) (20%)
2018 2019
Beginning inventory UZS 2,000,000 UZS 3,000,000
Cost of goods purchased 15,000,000 17,500,000
Cost of goods available for sale 17,000,000 20,500,000
Ending inventory (3,000,000) (3,500,000)
Cost of goods sold UZS 14,000,000 UZS 17,000,000
In 2020, the internal auditor of Burkhanov found that the company made following two errors:
- 2018 ending inventory was overstated by USZ 250,000.
- 2019 ending inventory was understated by USZ 550,000.
Instruction: Compute the correct cost of goods sold for each year.
Homework Answers
Answer #1
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