Lebo Hardware reported cost of goods sold as follows.
2011 2012
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) 2011 ending inventory was overstated $3,000, and (2) 2012 ending inventory
was understated $6,000.
Instructions
Compute the correct cost of goods sold for each year.