Question

Mustang Corporation reports the following for the month of April:

Finished goods inventory, April 1 $ 31,300
Finished goods inventory, April 30 25,500
Total cost of goods manufactured 1 18,700
The cost of goods sold for April is:_______.
a. $61,900.
b. $124,500.
c. $112,900.
d. $173,700.
e. $150,000.

Answer 1

COGS= $124,500

Step-by-step explanation:

Giving the following information:

Finished goods inventory, April 1 $ 31,300

Finished goods inventory, April 30 25,500

Total cost of goods manufactured 118,700

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= 31,300 + 1$118,700 - 25,500

COGS= $124,500