The Following Data Are Available for Three Products of the Classic

question 14

Short Answer

The following data are available for three products of the Classic Company: $\begin{array} { l r r r } & \text { A } & \text { B } & \text { C } \\\text { Beginning inventory } & \$ 5,000 & \$ 20,000 & \$ 15,000 \\\text { Purchases } & 45,000 & 65,000 & 62,000 \\\text { Goods available for sale } & 50,000 & 85,000 & 77,000 \\\text { Ending inventory } & 18,000 & 13,000 & 9,000 \\\text { Cost of goods sold } & 32,000 & 72,000 & 68,000\end{array}$ You discover the following errors:
a)Ending inventory for product A was overstated by $6,000.
b)Ending inventory for product B was understated by $5,000.
c)Beginning inventory for product C was overstated by $3,000.
Considering these errors, recalculate cost of goods sold for each product.

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Definitions:

Black Market

An illegal trading environment where goods or services are bought and sold without government authorization or oversight.

Market Determined Prices

Prices established through the interaction of supply and demand in a marketplace, reflecting the equilibrium where the quantity supplied equals the quantity demanded.

Ration Coupons

Documents or digital vouchers that allow the holder to purchase a certain amount of a product, often used by governments in times of shortage to ensure equitable distribution.

Right to Purchase

The option or privilege given to an individual or entity to buy something at a predetermined price within a specific time frame.