Question

Dolan Company's accounting records reflect the following inventories: Dec. 31, 2020 Dec. 31, 2019 Raw materials inventory $310000 $260000 Work in process inventory 300000 160000 Finished goods inventory 190000 150000 During 2020, $800000 of raw materials were purchased, direct labor costs amounted to $670000, and manufacturing overhead incurred was $640000. If Dolan Company's cost of goods manufactured for 2020 amounted to $1890000, its cost of goods sold for the year is ______ $2000000. $1930000. $1750000. $1850000.

Answer 1

The cost of goods sold for the year can be calculated by subtracting the cost of goods manufactured from the cost of goods available for sale.

Step-by-step explanation:

The cost of goods sold for the year can be calculated by subtracting the cost of goods manufactured from the cost of goods available for sale. The cost of goods available for sale is the sum of the beginning finished goods inventory and the cost of goods manufactured. In this case, the beginning finished goods inventory is $150,000, and the cost of goods manufactured is $1,890,000. Therefore, the cost of goods available for sale is $150,000 + $1,890,000 = $2,040,000. Subtracting the cost of goods manufactured of $1,890,000 from the cost of goods available for sale gives us the cost of goods sold for the year, which is $2,040,000 - $1,890,000 = $150,000.

Answer 2

Cost Of Goods Sold= $1,930,000

Step-by-step explanation:

Giving the following information:

Beginning Finished goods inventory 190000

Ending Finished goods inventory 150000

Cost of goods manufactured for 2020 amounted to $1890000

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 190,000 + 1,890,000 - 150,000= $1,930,000