Inventory Error The following selected financial infarmution is freen firylor and compuny. e was determined that due to errors in the phycal irventory counc, the vear t endre invintory was overstated by $2,300. At the end of Year 2 items costing $500 were in transit and not induded in the pennical inventory count however, ownersh p had transferred to Taylor and Compary. a. Compute the correct cost of gocds sold for both years