Yale Co Has Valued Its Beginning and Ending Inventories at $4,000

question 32

Essay

Yale Co. has valued its beginning and ending inventories at $4,000 and $7,000, respectively, during a period where cost of goods sold was $22,000. An auditor found an error in the valuation of the ending inventory and insisted that it be restated to $6,000. Calculate the adjusted cost of goods sold resulting from the inventory restatement.

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Definitions:

Multiple-Product Order

A form of cease-and-desist order issued by the FTC that applies not only to a specified product but also to other products produced by the same firm.

Cease-And-Desist Order

An FTC order requiring that a company stop its illegal behavior.

Deceptive Advertising

The act of misleading consumers through false claims, incomplete information, or other misleading statements in advertising.

Federal Regulations

Laws set by the federal government to control the way businesses operate, affecting various sectors like banking, environment, and healthcare.