A company reports its gross profit as $200,000 in Year One and $260,000 in Year Two. However, an independent auditor discovers that mistakes were made in each year in determining ending inventory. At the end of Year One, merchandise costing $18,000 was omitted from the year-end physical inventory count. At the end of Year Two, merchandise costing $7,000 was accidentally counted twice. What does the auditor believe the gross profit should be for Year Two?

Why are you asking the same question that you asked about two weeks ago? You should at least search for those results before repeating questions.

http://www.cpanet.com/cpa_forum/forum_posts.asp?TID=32106&am p;KW=inventory

Many people who come on this forum are not here to help anyone else but themselves. I am so fed up with it. They are lazy and don't feel the need to do the studying and researching an answer for themselves. Cpanet is an easy way for them to get through the exam and then you won't hear from them again.

I agree it is really ridiculous. I always thought the best way to retain info was to actually study the material, rather than relying on someone else to give you the answer.