Question

Versaille company has cost of goods manufactured $325,000, beginning finished goods inventory $150,000, and ending finished goods inventory $175,000, for the year. What is the cost of goods sold?

Answer 1

Calculation of Cost of Goods Sold for Versaille company:

It is given that Versaille Company has the cost of goods manufactured $325,000, beginning finished goods inventory $150,000, and ending finished goods inventory $175,000. The Cost of Goods Sold can be calculated using the following formula;

Cost of Goods Sold = Cost of goods manufactured + beginning finished goods inventory - ending finished goods inventory

= 325,000+150,000-175,000

= $300,000

Hence, the cost of goods sold for Versaille company is $300,000