Question

A manufacturing company has a beginning finished goods inventory of $16,500, raw material purchases of $19,900, cost of goods manufactured of $36,300, and an ending finished goods inventory of $19,700. The cost of goods sold for this company is: Multiple Choice

Answer 1

Answer:Cost of Goods sold =$33,100

Step-by-step explanation:Cost of goods sold (COGS) are all the direct costs incurred in producing the goods or services which is then sold by a company.

Cost of Goods sold =Beginning Finished goods Inventory +Cost of goods manufactured – Ending Finished goods Inventory

= $16,500+ $36,300 - $19700

=$52,800 -$19700

=$33,100