Question text

Errors in Inventory Counts The following information was taken from the records of Taylor Enterprises:

20132012 Beginning inventory $65,000 $55,000 Cost of goods purchased 425,000 405,000 Cost of goods available for sale 490,000 460,000 Ending inventory 60,000 65,000 Cost of goods sold $430,000 $395,000

The following two errors were made in the physical inventory counts:

1. 2012 ending inventory was understated by $15,000.

2. 2013 ending inventory was overstated by $10,000.

Compute the correct cost of goods sold for both 2012 and 2013.

Cost of goods 2013 and 2012