Question

Using the information below, calculate the cost of goods sold for the period:

Sales: $1,304,000
Selling expenses: $239,000
Finished goods inventory, beginning: $36,000
Finished goods inventory, ending: $41,000
Cost of goods manufactured: $540,000

Answer 1

The cost of goods sold for the period is calculated using the formula: Beginning Inventory + Cost of Goods Manufactured - Ending Inventory. Given the values of $36,000 for beginning inventory, $540,000 for cost of goods manufactured, and $41,000 for ending inventory, the COGS is $535,000.

Step-by-step explanation:

To calculate the Cost of Goods Sold (COGS) for the period, we use the following formula:

COGS = Beginning Inventory + Cost of Goods Manufactured - Ending Inventory

Here, the Beginning Inventory of Finished Goods is $36,000, the Cost of Goods Manufactured is $540,000, and the Ending Inventory of Finished Goods is $41,000.

Using these figures:

1. COGS = $36,000 (Beginning Inventory) + $540,000 (Cost of Goods Manufactured) - $41,000 (Ending Inventory)
2. COGS = $576,000 - $41,000
3. COGS = $535,000

So the cost of goods sold for the period is $535,000.