Errors in Inventory Counts The following information was taken from the records of Taylor Enterprises: Year 2 Year 1 Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold $225,000 $187,500 1,575,000 1,500,000 1,800,000 1,687,500 206,250 225,000 $1,593,750 $1,462,500 The following two errors were made in the physical inventory counts: 1. Year 1 ending inventory was understated by $37,500. 2. Year 2 ending inventory was overstated by $18,750. Compute the correct cost of goods sold for both years. Year 2 Year 1 Cost of goods sold $ $