Question

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

Sales revenues for the period $1,304,000
Operating expenses for the period $239,000
Finished Goods Inventory, January 1 36,000
Finished Goods Inventory, December 31 41,000
Cost of goods manufactured for the period $540,000
a. $774,000.
b. $769,000.
c. $530,000.
d. $535,000.
e. $448,000.

Answer 1

COGS= $535,000

Step-by-step explanation:

Giving the following information:

Finished Goods Inventory, January 1= 36,000

Finished Goods Inventory, December 31= 41,000

Cost of goods manufactured for the period= $540,000

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

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

COGS= 36,000 + 540,000 - 41,000

COGS= $535,000