Pete's Packaging Reported Its Cost of Goods Sold as Follows

question 31

Essay

Pete's Packaging reported its cost of goods sold as follows: The ending inventory at September 30, 2013 was overstated by $6,500.
Instructions
a. Calculate the correct cost of goods sold for both years.
b. Describe how the error has affected the financial statements for 2013 and for 2014, and for the two years combined.