Question

During FY 2016, Bravo Manufacturing had a beginning finished goods inventory of $250 & ending finished goods inventory of $1,000.

Work-in-process decreased by $500 during FY 2016 and factory overhead was $2,000.

The total manufacturing costs amounted to $48,000.

Use this information to determine the FY 2016 dollar amount of: (Round dollar values & enter as whole dollars only.)

1. Cost of Goods Manufactured
2. Cost of Goods Sold

Answer 1

1. Cost of Goods Manufactured is $48,500

2. Cost of Goods Sold is $47,750

Step-by-step explanation:

1. Cost of Goods Manufactured

Total Manufacturing Costs $48,000

Add Decrease in Work-in-process $500

Cost of Goods Manufactured $48,500

2. Cost of Goods Sold

Opening Stock of Finished Goods $250

Add Cost of Goods Manufactured $48,500

Less Closing Stock of Finished Goods ($1,000)

Cost of Goods Sold $47,750