Brooks Hardware reported cost of goods sold as follows.
|
2012 |
2011 |
|
|
Beginning inventory |
$30,000 |
$20,000 |
|
Cost of goods purchased |
175,000 |
164,000 |
|
Cost of goods available for sale |
205,000 |
184,000 |
|
Less: Ending inventory |
37,000 |
30,000 |
|
Cost of goods sold |
$168,000 |
$154,000 |
Brooks made two errors:
1. 2011 ending inventory was overstated by $2,000.
2. 2012 ending inventory was understated by $5,000.
Instructions
Compute the correct cost of goods sold for each year.