Question

The cost of goods sold for Michaels Manufacturing in the current year was $233,000. The January 1 finished goods inventory balance was $31,600, and the December 31 finished goods inventory balance was $24,200. Cost of goods manufactured during the period was

Answer 1

Answer:

Cost of goods manufactured during the period was $225,600

Explanation:

The computation of the Cost of goods manufactured is shown below:

Cost of goods manufactured = Cost of goods sold + ending balance of finished goods inventory - beginning balance of finished goods inventory

= $233,000 + $24,200 - $31,600

= $225,600

We simply added the ending balance of finished goods inventory and deducted the beginning balance of finished goods inventory to the Cost of goods sold