Instructions (a) Compute the cost of the ending inventory and the cost of goods sold using t average-cost method. (b) Will the results in (a) be higher or lower than the results under (1) FIFO and (2) LIFC (c) Why is the average unit cost not $6? ry E6-9 Elliott's Hardware reported cost of goods sold as follows. 2016 2017 Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold 20,000 30,000 175,000 205,000 35,000 $140,000 $%170,000 150,000 170,000 30,000 Elliott's made two errors: (1) 2016 ending inventory was overstated $3,000, and (2) 2017 ending inventory was understated $5,000. Instructions Compute the correct cost of goods sold for each year. 10 Smart Watch Company reported the following income statement data for a 2-year period. 2016 2017 Sales revenue $220,000 $250,000 Cost of goods sold