Question

Romeo Corporation reports the following for the year: Finished goods inventory, January 1 $ 2,500 Finished goods inventory, December 31 3,300 Total cost of goods sold 7,600 The cost of goods manufactured for the year is:

Answer 1

Answer:

The cost of goods manufactured for the year is: $8,400

Explanation:

The cost of goods manufactured is calculated by using following formula:

The cost of goods manufactured = Finished goods inventory, December 31 + Cost of goods sold - Finished goods inventory, January 1.

Romeo Corporation has Finished goods inventory, January 1 of $2,500 Finished goods inventory, December 31 of $3,300 and Total cost of goods sold of $7,600

The cost of goods manufactured = $3,300 + $7,600 - $2,500  = $8,400