Question

using the following data for july, calculate the cost of goods manufactured: beginning finished goods inventory 150,475. Ending finished goods inventory 145,750. sales 400,000. Gross Margin 120,000. The cost of goods manufactured was

Answer 1

The correct response is "$275,275".

Step-by-step explanation:

The given values are:

Sales,

= 400,000

Gross margin,

= 120,000

Beginning Inventory goods,

= 150,475

Finished inventory goods,

= 145,750

Now,

The cost of goods sold will be:

=
`Sales-Gross \ margin`

On substituting the values, we get

=
`400,000-120,000`

=
`280,000`

As we know,

⇒
`Cost \ of \ goods \ sold=Beginning \ inventory \ goods+ cost \ of \ goods \ manufactured-Ending \ inventory \ goods`

⇒
`280,000=150,475+ cost \ of \ goods \ manufactured-145750`

⇒
`280,000=cost \ of \ goods \ manufactured+4,725`

⇒
`Cost \ of \ goods \ manufactured=280,000-4,725`

⇒
`=275,275` ($)