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Lebo Hardware reported the cost of goods sold as follows:

Lebo Hardware reported the cost of goods sold as follows:

2010
2011

Beginning Inventory $20,000 $30,000
Cost of goods purchased 150,000
175,000

Cost of goods available for sale 170,000 205,000
Ending inventory 30,000
35,000

Cost of goods sold $140,000
$170,000



Lebo made two errors: (1) 2010 ending inventory was overstated by $3,000 and (2) 2011 ending inventory was understated $6,000.

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