Question

Using the information below, calculate the cost of goods manufactured for the period.

Beginning Raw Materials Inventory $25,000
Ending Raw Materials Inventory $30,000
Beginning Work in Process Inventory $55,000
Ending Work in Process Inventory $64,000
Beginning Finished Goods Inventory $80,000
Ending Finished Goods Inventory $67,000
Cost of Goods Sold for the period $540,000
Sales revenues for the period $1,254,000
Operating expenses for the period $232,000
a. $549,000.
b. $527,000.
c. $525,000.
d. $553,000.
e. $536,000.

Answer 1

The correct answer is B.

Step-by-step explanation:

Giving the following information:

Beginning Finished Goods Inventory $80,000

Ending Finished Goods Inventory $67,000

Cost of Goods Sold for the period $540,000

To calculate the cost of goods manufactured, we need to use the following formula:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

540,000= 80,000 + cost of goods manufactured - 67,000

540,000 - 80,000 + 67,000= cost of goods manufactured

$527,000= cost of goods manufactured