Calculate inventory errors. (LO 8)
Ian’s Small Appliances reported cost of goods sold as follows.
|
200s |
2006 |
|
|
Beginning inventory |
$130,000 |
$ 50,000 |
|
Purchases |
275,000 |
240,000 |
|
Cost of goods available for sale |
405,000 |
290,000 |
|
Ending inventory |
50,000 |
40,00 |
|
Cost of goods sold |
$355,000 |
$250,00 |
I an’s made two errors:
1. 2005 ending inventory was understated by 95,000.
2. 2006 ending inventory was overstated by $2,000.
Calculate the correct cost of goods sold for 2005 and2006.