Question

Concord Corporation's accounting records reflect the following inventories:

	Dec. 31, 2020		Dec. 31, 2019
Raw materials inventory	$310000		$260000
Work in process inventory	300000		160000
Finished goods inventory	190000		150000

During 2020, $720000 of raw materials were purchased, direct labor costs amounted to $751500, and manufacturing overhead incurred was $768000.

If Concord Corporation's cost of goods manufactured for 2020 amounted to $2049500, its cost of goods sold for the year is

$2009500.

$1909500.

$2089500.

$2159500.

Answer 1

Answer: $ 2,009,500

Explanation

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

= 150,000 + 2,049,500 - 190,000

= $ 2,009,500

Answer 2

Answer:
Cost of Goods manufactured
Particulars	Amount (in $ )	Amount (in $ )
Raw materials inventory, December 31, 2019	$ 260,000
Add: Raw materials purchases	$ 720,000
Cost of Raw materials available for use	$ 980,000
Less: Raw materials inventory, December 31, 2020	($ 310,000)
Raw materials used in production		$ 670,000
Direct labor Costs		$ 751,500
Manufacturing overhead		$ 768,000
Total Manufacturing Cost		$ 2,189,500
Add: Work in process inventory, December 31, 2019		$ 160,000
Total Cost of work in Process		$ 2,349,500
Less: Work in process inventory, December 31, 2020		($ 300,000)
Costs of goods manufactured		$ 2,049,500
Cost of Goods Sold
Finished goods inventory, December 31, 2019	$ 150,000
Add: Cost of goods Manufactured	$ 2,049,500
Cost of Goods available for sale	$ 2,199,500
Less: Finished goods inventory, December 31, 2020	($ 190,000)
Cost of Goods Sold	$ 2,009,500
Option (a) is Correct