Poppy Co. uses a periodic inventory system. Beginning inventory on January 1 was understated by $30,600, and its ending inventory on December 31 was understated by $15,900. In addition, a purchase of merchandise costing $20,300 was incorrectly recorded as a $2,030 purchase. None of these errors were discovered until the next year. As a result, Poppy's cost of goods sold for this year was: 

Multiple Choice 

• Understated by $32,970. 
• Understated by $48,870. 
• Overstated by $3,570. 
• Overstated by $32,970.