I am really lost here, any help would be great. Problem: Production: 25,000 units Sales (25,000 units) $2,500,000 Cost of goods sold Starting inventory (10,000 units) $650,000 Production costs 1,625,000 Total $2,275,000 Ending inventory 650,000

Hi! I'm having some trouble with my accounting work so hopefully someone here can help! Thanks in advance! Basically, I'm very unsure about the effect of errors in income statement when it comes to the second year. The question I have basically is that expense account has been understated in...

I spend hours of trying to figure how different errors effecting income statement. Please let me know if I'm wrong. Thanks 1. Understated ending inventory would cause understated income 2. Overstated beginning inventory would cause understaed income 3. understated purchase would cause...