Miami Corp. obtained the following information from its accounting records:

Sales Beginning Finished Goods Inventory Ending Finished Goods Inventory Cost of Goods Sold

$19,000 $12,000 $ 8,000 $9,000

The Cost of Goods Manufactured this period equals:

A. $11,000

B. $ 5,000

C. $10,000

D. $6,000

cost of goods manufactured = $5,000

Explanation:

Giving the following information:

Beginning Finished Goods Inventory = 12,000

Ending Finished Goods Inventory = 8,000

Cost of Goods Sold = $9,000

To calculate the cost of goods manufactured, we need to use the following formula:

COGS = beginning finished inventory + cost of goods manufactured - ending finished inventory

Isolating cost of goods manufactured

cost of goods manufactured = - beginning finished inventory + COGS + ending finished inventory

cost of goods manufactured = - 12,000 + 9,000 + 8,000

cost of goods manufactured = $5,000