Question #5 Pete's Packaging reported its cost of goods sold as follows: 2014 2013 Beginning inventory $ 26,000 $19,000 Cost of goods purchased 195,000 168,000 Ending inventory (34,500) (26,000) Cost of goods sold $ 186,500 $161,000 The ending inventory at September 30, 2013 was overstated by $6,500. Instructions a. b. Calculate the correct cost of goods sold for both years. Describe how the error has affected the financial statements for 2013 and for 2014, and for the two years combined.