Question

Logan Corp.'s trial balance of income statement accounts for the year ended December 31, 2017 included the following:

Debit Credit
Sales revenue $280,000
Cost of goods sold $170,000
Administrative expenses 40,000
Loss on disposal of equipment 18,000
Sales commission expense 16,000
Interest revenue 10,000
Freight-out 6,000
Loss from discontinued operations 24,000
Bad debt expense 6,000
Totals $280,000 $290,000

Other information:
Logan's income tax rate is 30%. Finished goods inventory:

January 1, 2017 $160,000
December 31, 2017 140,000

On Logan's multiple-step income statement for 2017, Cost of goods manufactured is:_______

Answer 1

$190,000

Explanation:

The computation of the cost of goods manufactured is shown below:

The Cost of goods manufactured is

= Opening finished goods balance + cost of goods sold - ending finished goods balance

= $160,000 + $170,000 - $140,000

= $190,000

Hence, the cost of goods manufactured is $190,000

We simply applied the above formula