Question

The cost of goods sold for Frye Manufacturing in the year was $ 325 comma 000 . The January 1 Finished Goods Inventory balance was $ 31 comma 800 ​, and the December 31 Finished Goods Inventory balance was $ 25 comma 200 . Calculate the cost of goods manufactured during the year.

Answer 1

Answer:

$318,400

Explanation:

Cost of Goods Sold                              $325,000

Less: Inventory Opening January 1        ( $ 31,800)

Add;Closing Inventory                               $25,200

Cost of Goods Manufactured                    $318,400

The cost of goods sold are found out by adding opening stock and deducting closing stock from cost of goods manufactured.

In the given scenario we had to follow reverse order to reach out at amount of cost of goods manufactured.

Answer 2

Answer:

$318,200

Explanation:

Cost of goods sold $325,000

Beginning inventory of finished goods (January 1) $31,800

Ending inventory of finished goods (December 31) $25,000

cost of goods manufactured = COGS + ending inventory - beginning inventory = $325,000 + $25,000 - $31,800 = $318,200