Errors in Inventory Counts

The following information was taken from the records of Tinker Enterprises:

	Year 1	Year 2
Beginning Inventory	$95,000	$114,000
Cost of goods purchased	760,000	798,000
Cost of goods available for sale	855,000	912,000
Ending inventory	114,000	104,500
Cost of goods sold	$741,000	$807,500

The following two errors were made in the physical inventory counts: 1. Year 1 ending inventory was understated by $15,200 2. Year 2 ending inventory was overstated by $7,600

Compute the correct cost of goods sold for both years.

	Year 1	Year 2
Cost of goods sold	Answer	Answer