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 $16,200. In addition, a purchase of merchandise costing $21,200 was incorrectly recorded as a $2,120 purchase. None of these errors were discovered until the next year. As a result, Poppy's cost of goods sold for this year was:

• Understated by $33,480.

• Overstated by $4,680.

• Understated by $49,680.

• Overstated by $33,480.