Errors in Inventory Counts The following information was taken from the records of Taylor Enterprises: 2013 2012 Beginning inventory $70,000 $60,000 Cost of goods purchased 430,000 410,000 Cost of goods available for sale 500,000 470,000 Ending inventory 65,000 70,000 Cost of goods sold $435,000 $400,000 The following two errors were made in the physical inventory counts: 1. 2012 ending inventory was understated by $10,000. 2. 2013 ending inventory was overstated by $5,000. Compute the correct cost of goods sold for both 2012 and 2013. 2013 2012 Cost of goods sold Answer Answer

Required: 1-a. the marketing manager argues that a $5,000 increase in the monthly advertising budget would increase monthly sales by $9,000. calculate the increase or decrease in net operating income. 1-b. should the advertising budget be increased ? yes no hintsreferencesebook & resources hint #1 check my work 8.value: 1.00 pointsrequired information 2-a. refer to the original data. management is considering using higher-quality components that would increase the variable expense by $2 per unit. the marketing manager believes that the higher-quality product would increase sales by 10% per month. calculate the change in total contribution margin. 2-b. should the higher-quality components be used? yes no