Compute cost of goods sold for the period using the following information. Finished goods inventory, beginning $ 374,000 Work in process inventory, beginning 85,500 Work in process inventory, ending 76,800 Cost of goods manufactured 932,800 Finished goods inventory, ending 286,000

Question

Business

Kendra Paul

5 April, 09:52

Compute cost of goods sold for the period using the following information. Finished goods inventory, beginning $ 374,000 Work in process inventory, beginning 85,500 Work in process inventory, ending 76,800 Cost of goods manufactured 932,800 Finished goods inventory, ending 286,000

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Answers (1)

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Yuliana Jones · Answer 1

COGS = $1,029,500

Explanation:

Giving the following information:

Finished goods inventory, beginning $ 374,000

Work in process inventory, beginning 85,500

Work in process inventory, ending 76,800

Cost of goods manufactured 932,800

Finished goods inventory, ending 286,000

cost of goods manufactured = beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured = 85,500 + 932,800 - 76,800

cost of goods manufactured = 941,500

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

COGS = 374,000 + 941,500 - 286,000 = $1,029,500