Last month a manufacturing company had the following operating results: beginning finished goods inventory - $84,000; ending finished goods inventory - $71,000; sales - $505,000; gross margin - $63,000. What was the cost of goods manufactured for the month? A) $429,000. B) $492,000. C) $442,000. D) $455,000.

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Business

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19 May, 22:59

Last month a manufacturing company had the following operating results: beginning finished goods inventory - $84,000; ending finished goods inventory - $71,000; sales - $505,000; gross margin - $63,000. What was the cost of goods manufactured for the month? A) $429,000. B) $492,000. C) $442,000. D) $455,000.

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Answers (1)

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Amelia Wiggins · Answer 1

A) $429,000

Explanation:

For computing the cost of goods manufactured for the month, we have to use the formula which is displayed below:

= Sales - Gross profit + ending finished goods inventory - beginning finished good inventory

= $505,000 - $63,000 + $71,000 - $84,000

= $429,000

All items which are mentioned in the question are to be considered in the computation part.