Question

A manufacturing company has a beginning finished goods inventory of $14,600, raw material purchases of $18,000, cost of goods manufactured of $32,500, and an ending finished goods inventory of $17,800. The cost of goods sold for this company is: Group of answer choices $29,300. $27,600. $32,500. $47,100. $21,200.

Answer 1

Given:

Beginning Finished Goods

Cost of Goods Manufactured

Ending Finished Goods

Raw material purchases

To find:

Cost of Goods Sold

Solution:

The formula to calculate the cost of the goods sold for the manufacturing company is as follows,

Cost of Goods Sold = Beginning Finished Goods + Cost of Goods Manufactured - Ending Finished Goods

On substituting the values in the above formula we get,

$\text{Cost of Goods sold }= \ 14600+\ 32500-\ 17800=\ 29300$

Therefore, the cost of goods sold is $29300.

Here, we have ignored the purchase of raw materials cost because this amount will already be included in the cost of goods manufactured.