Kushman Combines Inc. has $20,000 of ending finished goods inventory as of December 31, 2017. If beginning finished goods inventory was $10,000 and cost of goods sold was $50,000, how much would Kushman report for cost of goods manufactured?

(A) $60,000

(B) $40,000

(C) $10,000

(D) $70,000

Question

Business

Craig Moore

6 January, 14:53

Kushman Combines Inc. has $20,000 of ending finished goods inventory as of December 31, 2017. If beginning finished goods inventory was $10,000 and cost of goods sold was $50,000, how much would Kushman report for cost of goods manufactured?

(A) $60,000

(B) $40,000

(C) $10,000

(D) $70,000

+2

Answers (1)

Know the Answer?

Gibson · Answer 1

The correct answer is A.

Explanation:

Giving the following information:

Kushman Combines Inc. has $20,000 of ending finished goods inventory as of December 31, 2017. If beginning finished goods inventory was $10,000 and the cost of goods sold was $50,000.

We need to use the following formula:

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

50,000 = 10,000 + cost of goods manufactured - 20,000

50,000 + 20,000 - 10,000 = cost of goods manufactured

60,000 = cost of goods manufactured

Kushman Combines Inc. has $20,000 of ending finished goods inventory as of December 31, 2017. If beginning finished goods inventory was $10,000 and cost of goods sold was $50,000, how much would Kushman report for cost of goods manufactured?(A) $60,000(B) $40,000(C) $10,000(D) $70,000

Kushman Combines Inc. has $20,000 of ending finished goods inventory as of December 31, 2017. If beginning finished goods inventory was $10,000 and cost of goods sold was $50,000, how much would Kushman report for cost of goods manufactured?

(A) $60,000

(B) $40,000

(C) $10,000

(D) $70,000