Compute the correct cost of goods sold for each year

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Reference no: EM132677864

Problem - Crane Company reported cost of goods sold as follows.

	2022	2021
Beginning inventory	$27,890	$18,260
Cost of goods purchased	187,110	155,510
Cost of goods available for sale	215,000	173,770
Less: Ending inventory	36,140	27,890
Cost of goods sold	$178,860	$145,880

Crane Company made two errors:

1. 2021 ending inventory was overstated by $2,180.

2. 2022 ending inventory was understated by $4,640.

Required - Compute the correct cost of goods sold for each year.

Reference no: EM132677864

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