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Burkhanov Hardware Ltd. in Tashkent, Uzbekistan reported cost of goods sold as follows. (Currency in Uzbekistan som, UZS) (20%) 2018 2019 Beginning inventory UZS 2,000,000

  1. Burkhanov Hardware Ltd. in Tashkent, Uzbekistan reported cost of goods sold

as follows. (Currency in Uzbekistan som, UZS) (20%)

2018 2019

Beginning inventory UZS 2,000,000 UZS 3,000,000

Cost of goods purchased 15,000,000 17,500,000

Cost of goods available for sale 17,000,000 20,500,000

Ending inventory (3,000,000) (3,500,000)

Cost of goods sold UZS 14,000,000 UZS 17,000,000

In 2020, the internal auditor of Burkhanov found that the company made following two errors:

  1. 2018 ending inventory was overstated by USZ 250,000.
  2. 2019 ending inventory was understated by USZ 550,000.

Instruction: Compute the correct cost of goods sold for each year.

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