Answer:
a. Cost of Goods Sold (COGS) amounts to $21,100
Explanation:
a.
Computing the Cost of Goods Available for Sale as:
Cost of Goods Available for Sale = Beginning Finished Goods Inventory + Cost of Goods Manufactured
where
Cost of Goods Manufactured is $18,600
Beginning Finished Goods Inventory is $15,000
So, putting the values above:
Cost of Goods Available for Sale = $18,600 + $15,000
Cost of Goods Available for Sale = $33,600
Computing the COGS (Cost of Goods Sold) as:
Cost of Goods Sold (COGS) = Cost of Goods Available for Sale - Ending Finished goods Inventory
where
Cost of Goods Available for Sale is $33,600
Ending Finished goods Inventory is $12,500
So, putting the values above:
Cost of Goods Sold (COGS) = $33,600 - $12,500
Cost of Goods Sold (COGS) = $21,100
