Van Copier inventory data for the year ended December 31, 2008 is as follow:

Sales Revenue $50,000

Cost of Goods Sold:

Beginning Inventory.. $ 4,200

Net Purchases 27,400

Cost of Goods Available 31,600

Ending Inventory (4,600) 27,000

Gross Profit $23,000

a) Assume that ending inventory was accidentally overstated by $1,000. What are the correct

amounts for cost of goods sold and gross profit?

b) How would the inventory error affect cost of goods sold and gross profit for the year ended

December 31, 2009?