Question

TB MC Qu. 01-147 (Algo) Use the following information...

Use the following information to calculate the cost of goods sold for the period:
Beginning Finished Goods Inventory $ 36,500
Ending Finished Goods Inventory 35,000
Cost of Goods Manufactured 1,43,800

Answer 1

To calculate the cost of goods sold, subtract the ending finished goods inventory from the beginning finished goods inventory and then add the cost of goods manufactured.

Step-by-step explanation:

To calculate the cost of goods sold, we need to subtract the ending finished goods inventory from the beginning finished goods inventory and then add the cost of goods manufactured. In this case, the beginning finished goods inventory is $36,500, the ending finished goods inventory is $35,000, and the cost of goods manufactured is $143,800.

So, the calculation would be:

Cost of Goods Sold = Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory

Cost of Goods Sold = $36,500 + $143,800 - $35,000 = $145,300.