Answer:
$991,300
Explanation:
Given that,
Finished goods inventory, Dec. 31, 2014 = $345,000
Work in process inventory, Dec. 31, 2014 = $83,500
Work in process inventory, Dec. 31, 2015 = $72,300
Cost of goods manufactured, 2015 = $918,700
Finished goods inventory, Dec. 31, 2015 = $283,600
We need to calculate cost of goods manufactured first.
Cost of goods manufactured:
= Cost of goods manufactured, 2015 + Beginning work in process inventory - Ending work in process inventory
= $918,700 + $83,500 - $72,300
= $929,900
Cost of goods sold for 2015:
= Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory
= $345,000 + $929,900 - $283,600
= $991,300
