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30 May, 20:51

A manufacturing company calculates cost of goods sold as follows:

Beginning FG inventory + cost of goods purchased - ending FG inventory.

Beginning FG inventory - cost of goods manufactured - ending FG inventory.

Beginning FG inventory + cost of goods manufactured - ending FG inventory.

Ending FG inventory - cost of goods manufactured + beginning FG inventory.

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  1. 30 May, 23:16
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    Beginning FG inventory + cost of goods manufactured - ending FG inventory.

    Explanation:

    The formula to compute the cost of good sold is shown below:

    = Beginning balance of finished goods inventory + cost of goods manufactured - ending balance of finished goods inventory

    The Beginning balance of finished goods inventory + cost of goods manufactured is called cost of goods that are available for sale

    Hence, the third option is right and rest options are wrong
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