Lebo Hardware reported cost of goods sold as follows.

2010

2011

Beginning inventory

$ 20,000

$ 30,000

Cost of goods purchased

150,000

175,000

Cost of goods available for sale

170,000

205,000

Ending inventory

30,000

35,000

Cost of goods sold

$140,000

$170,000

Lebo made two errors: (1) 2010 ending inventory was overstated $3,000, and (2) 2011 ending inventory was understated $6,000.

Instructions

Compute the correct cost of goods sold for each year.