Question

During May, the cost of goods manufactured was $55,000. The beginning finished goods inventory for the month was $22,000, and the ending finished goods inventory was $34,000. What was the cost of goods sold for May?

Answer 1

$43,000

Step-by-step explanation:

The cost of goods sold refers to the direct expense incurred in producing goods sold by a company. The formula for calculating the cost of goods sold (COGS) is as follows

COGS=Beginning Inventory+Purchases −Ending Inventory. For a manufacturing firm, Purchases is replaced by manufactured goods.

In this case:

Beginning inventory is $22,000

Ending inventory is $ 34000

Cost of manufactured goods is $55,000

Therefore:

COGS = $22000+ $55000 -$34,000

COGS =$43,000