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30 October, 23:26

Youngstown Rubber reports the following data for its first year of operation:Direct materials used $710,000cost of goods manufactured455,000finished goods inventory (ending) 190,000manufacturing overhead100,000finished goods inventory beginning 0work in process inventory beginning 0work in process inventory, ending 130,000What is the cost of goods sold? (a) $1,265,000 (b) $455,000 (c) $395,000 (d) $265,000

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  1. 31 October, 00:39
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    The correct answer is: D = $265,000

    Explanation:

    Giving the following information:

    Direct materials used $710,000

    Cost of goods manufactured $455,000

    Finished goods inventory (ending) 190,000

    Manufacturing overhead100,000

    Finished goods inventory beginning 0

    Work in process inventory beginning 0

    Work in process inventory, ending 130,000

    First, we need to calculate the cost of goods manufactured during the period:

    Cost of manufactured period = $455000

    Now, we can calculate the cost of goods sold (COGS):

    COGS=Beginning Inventory+Production during period-Ending Inventory

    COGS = 0 + 455000 - 190000 = $265000
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