Prunedale Co. uses a periodic inventory system. Beginning inventory on January 1 was overstated by $32,000, and its ending inventory on December 31 was understated by $62,000. These errors were not discovered until the next year. As a result, Prunedales cost of goods sold for this year was:
A.	Overstated by $94,000.
B.	Overstated by $30,000.
C.	Understated by $94,000.
D.	Understated by $30,000.
Answer:A
Prunedale Co. uses a periodic inventory system. Beginning inventory on January 1 was overstated by $32,000, and its ending inventory on December 31 was understated by $62,000. These errors were not discovered until the next year. As a result, Prunedales cost of goods sold for this year was:
A.	Overstated by $94,000. B.	Overstated by $30,000. C.	Understated by $94,000. D.	Understated by $30,000.