Question

1. The beginning balance of Finished Goods is $50,000, the ending balance in Finished Goodsis $100,000, and Cost of Goods Manufactured is $200,000. What is Cost of Goods Sold?a. $100,000b. $250,000c. $150,000d. None of the above

Answer 1

Step-by-step explanation:

Opening Balance: 5000

The cost of Goods Manufactured is the production for the period.

After the new stock has been manufactured the balance will be: $50000+$200000 = $250000.

The Cost of Goods sold will be the difference between this value and the ending balance as selling stock reduces the stock balance.

Cost of Goods Sold = $250000 - $100000

= $150000

Answer: $150000. Option C