Question

Swifty Corporation reported the following year-end information: beginning work in process inventory, $200000; cost of goods manufactured, $866000; beginning finished goods inventory, $332000; ending work in process inventory, $310000; and ending finished goods inventory, $354000. Swifty Corporation's cost of goods sold for the year is

A - $512000.
B - $844000.
C - $888000.
D - $756000.

Answer 1

Swifty Corporation's cost of goods sold (COGS) for the year is calculated by adding the beginning finished goods inventory to the cost of goods manufactured and then subtracting the ending finished goods inventory. The correct COGS for Swifty Corporation is $844,000.

To calculate Swifty Corporation’s cost of goods sold (COGS) for the year, we need to apply the following formula:

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

Using the numbers provided:

• Beginning Finished Goods Inventory = $332,000
• Cost of Goods Manufactured = $866,000
• Ending Finished Goods Inventory = $354,000

Plugging these values into the formula:

COGS = $332,000 + $866,000 - $354,000 = $844,000

Option B - $844,000 is the correct final answer for Swifty Corporation's cost of goods sold for the year.