Angus Enterprises Ltd. reported cost of goods sold for 2017 of $2.5 million and retained earnings of

Question:

Angus Enterprises Ltd. reported cost of goods sold for 2017 of $2.5 million and retained earnings of $4.0 million at December 31, 2017. Angus later discovered that its ending inventories at December 31, 2016 and 2017, were overstated by $150,000 and $50,000, respectively. Determine the correct amounts for 2017 cost of goods sold and December 31, 2017 retained earnings.