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B is corrent. The requirement is to determine the effect of inventory errors on cost of goods sold.  The effect of the errors on Wilson’s year 1 cost of goods sold (CGS) is illustrated below.
 

A is incorrect. The requirement is to determine the effect of inventory errors on cost of goods sold.  The effect of the errors on Wilson’s year 1 cost of goods sold (CGS) is illustrated below.
 

C is incorrect. The requirement is to determine the effect of inventory errors on cost of goods sold.  The effect of the errors on Wilson’s year 1 cost of goods sold (CGS) is illustrated below.
  

D is incorrect. The requirement is to determine the effect of inventory errors on cost of goods sold.  The effect of the errors on Wilson’s year 1 cost of goods sold (CGS) is illustrated below.