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Ivan
3 years ago
10

Cost of Goods Sold Allyson Ashley makes jet skis. During the year, Allyson manufactured 68,500 jet skis. Finished goods inventor

y had the following units:
January 1 14,385
December 31 19,420

Required:

a. How many jet skis did Allyson sell during the year?
b. If each jet ski had a product cost of $1,800, what was the cost of goods sold last year?
Business
1 answer:
Nuetrik [128]3 years ago
7 0

Answer:

Units sold= 63,465 units

Cost of goods sold= $114,237,000

Explanation:

Giving the following information:

Allyson manufactured 68,500 jet skis. Finished goods inventory had the following units:

January 1: 14,385

December 31: 19,420

First, we need to calculate the number of units sold:

Units sold= production of the period + beginning inventory - ending inventory

Units sold= 68,500 + 14,385 - 19,420= 63,465 units

Cost of goods sold= 63,465*1,800= $114,237,000

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