Problem - Hamid's Hardware reported cost of goods sold as follows.
|
2016
|
2017
|
|
Beginning inventory
|
$21,000
|
$32,500
|
|
Cost of goods purchased
|
151,500
|
187,500
|
|
Cost of goods available for sale
|
172,500
|
220,000
|
|
Ending inventory
|
32,500
|
35,500
|
|
Cost of goods sold
|
$140,000
|
$184,500
|
Hamid's made two errors: (1) 2016 ending inventory was overstated $3,150, and (2) 2017 ending inventory was understated $6,250.
Compute the correct cost of goods sold for each year.