Question

Youngstown Rubber reports the following data for its first year of operation:Direct materials used $710,000cost of goods manufactured455,000finished goods inventory (ending) 190,000manufacturing overhead100,000finished goods inventory beginning 0work in process inventory beginning 0work in process inventory, ending 130,000What is the cost of goods sold?(a) $1,265,000(b) $455,000(c) $395,000(d) $265,000

Answer 1

The correct answer is: D= $265,000

Step-by-step explanation:

Giving the following information:

Direct materials used $710,000

Cost of goods manufactured $455,000

Finished goods inventory (ending) 190,000

Manufacturing overhead100,000

Finished goods inventory beginning 0

Work in process inventory beginning 0

Work in process inventory, ending 130,000

First, we need to calculate the cost of goods manufactured during the period:

Cost of manufactured period= $455000

Now, we can calculate the cost of goods sold (COGS):

COGS=Beginning Inventory+Production during period−Ending Inventory

COGS= 0 + 455000- 190000= $265000