Question

A manufacturing company has a beginning finished goods inventory of $14,600, raw material purchases of $18,000, cost of goods manufactured of $32,500, and an ending finished goods inventory of $17,800. The cost of goods sold for this company is:

Answer 1

The cost of goods sold for this company is$29,300

Step-by-step explanation:

Cost of Goods sold is the cost of all the goods that is sold during the period excluding the cost of available Inventory.

Cost of Goods Manufactured is the cost of all the goods that is manufactured during the period including the cost of available Inventory.

As per given data

Beginning finished goods inventory = $14,600

Cost of goods manufactured = $32,500

Ending finished goods inventory = $17,800

Cost of Goods Sold = Cost of Goods Manufactured + Beginning finished goods inventory - Ending finished goods inventory

Cost of Goods Sold = $32,500 + $14,600 - $17,800 = $29,300