Lucia Company Reported Cost of Goods Sold for Year 1

Multiple Choice

Lucia Company reported cost of goods sold for Year 1 and Year 2 as follows: $\begin{array}{|l|c|c|}\hline & \text { Year 1 } & \text { Y ear 2 } \\\hline \text { Beginning inventory } & \$ 120,000 & \$ 130,000 \\\hline \text { Cost of goods purchased } & \underline{250,000} & \underline{275,000} \\\hline \begin{array}{l}\text { Cost of goods available for } \\\text { sale }\end{array} & 370,000 & 405,000 \\\hline \text { Ending inventory } & \underline{130,000} & \underline{135,000} \\\hline \text { Cost of goods sold } & \underline{\$ 240,000} & \underline{\$ 270,000} \\\hline\end{array}$
Lucia Company made two errors: 1) ending inventory at the end of Year 1 was understated by
$15,000 and 2) ending inventory at the end of Year 2 was overstated by $6,000. Given this information, the correct cost of goods sold figure for Year 2 would be:

A) $291,000
B) $276,000
C) $264,000
D) $249,000
E) $285,000