The following information was taken from the records of Taylor Enterprises: Year 2 Year 1 Beginning inventory $60,000 $50,000 Cost of goods purchased 420,000 400,000 Cost of goods available for sale 480,000 450,000 Ending inventory 55,000 60,000 Cost of goods sold $425,000 $390,000 The following two errors were made in the physical inventory counts: 1. Year 1 ending inventory was understated by $10,000. 2. Year 2 ending inventory was overstated by $5,000.