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.