Question

During April, the Meade Enterprises had the following operating results:1. Sales revenue$1,580,000 Gross margin$640,000 2. Ending work-in-process inventory$54,000 3. Beginning work-in-process inventory$88,000 4. Ending finished goods inventory$104,000 5. Beginning finished goods inventory$133,000 6. Marketing costs$258,000 Administrative costs$158,000 What is the cost of goods manufactured for April?

Answer 1

Answer:

$611,000= cost of goods manufactured

Explanation:

Giving the following information:

Gross margin$640,000

Ending finished goods inventory$104,000

Beginning finished goods inventory$133,000

To calculate the cost of goods manufactured we have to reverse engineer the cost of goods sold formula:

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

640,000= 133,000 + cost of goods manufactured - 104,000

611,000= cost of goods manufactured