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

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

1. 2018 ending inventory was understated by \(\$ 8,000\).

2. 2019 ending inventory was overstated by \(\$ 4,000\).

Compute the correct cost of goods sold for both 2018 and 2019.

Transcribed Image Text:

Beginning inventory.... Cost of goods purchased.. Cost of goods available for sale. Ending inventory.... Cost of goods sold. 2019 $ 60,000 2018 $ 50,000 420,000 400,000 480,000 450,000 55,000 60,000 $425,000 $390,000