Question

TB MC Qu. 14-167 Use the following information... Use the following information to calculate the cost of goods sold for the period Beginning Finished Goods Inventory Ending Finished Goods Inventory Cost of Goods Manufactured $ 21,500 20,000 128,800 Multiple Choice O $170,300 O $128,800 $127,300. O $150.300 $150,300 < Prev !!! Next

Answer 1

Solution:

The formula for calculating the Cost of Goods sold is

Cost of Goods sold = Cost of Goods manufactured + Beginning Finished goods inventory - Ending Finished goods inventory

As per the information given in the question we have

Cost of Goods manufactured = $ 128,800 ;    Beginning Finished goods inventory = $ 21,500

Ending Finished goods inventory = $ 20,000

Applying the above information in the formula we have the Cost of Goods sold as

= $ 128,800 + $ 21,500 - $ 20,000

= $ 130,300

Thus the cost of goods sold = $ 130,300

The solution is option 5 = $ 130,300