Question

Sheridan Company has $21000 of ending finished goods inventory as of December 31, 2019. If beginning finished goods inventory was $15000 and cost of goods sold was $50000, how much would Sheridan report for cost of goods manufactured

Answer 1

$56,000

Step-by-step explanation:

The computation of the cost of goods manufactured is shown below:

As we know that

Cost of goods sold = Opening finished goods inventory + cost of goods manufactured - ending finished goods inventory

$50,000 = $15,000 + cost of goods manufactured - $21,000

So, the cost of goods manufactured is

= $50000 + $6,000

= $56,000