Question

Romeo Corporation reports the following for the year:

Finished goods inventory, January 1 $ 3,200
Finished goods inventory, December 31 4,000
Total cost of goods sold 14,200
The cost of goods manufactured for the year is:
A. $21,400
B. $11,000
C. $15,000
D. $17,400
E. $10,200

Answer 1

C. $15,000

Step-by-step explanation:

Given that

Finished goods inventory, January 1 $ 3,200

Finished goods inventory, December 31 4,000

Total cost of goods sold 14,200

So the cost of goods manufactured is

As we know that

Cost of goods sold = Opening balance of finished goods + Cost of goods manufactured - ending balance of finished goods

$14,200 = $3,200 + Cost of goods manufactured - $4,000

So, the cost of goods manufactured is $15,000