Question

Last month a manufacturing company had the following operating results: beginning finished goods inventory - $84,000; ending finished goods inventory - $71,000; sales - $505,000; gross margin - $63,000.What was the cost of goods manufactured for the month?A) $429,000.B) $492,000.C) $442,000.D) $455,000.

Answer 1

Answer:

A) $429,000

Explanation:

For computing the cost of goods manufactured for the month, we have to use the formula which is displayed below:

= Sales - Gross profit + ending finished goods inventory - beginning finished good inventory

= $505,000 - $63,000 + $71,000 - $84,000

= $429,000

All items which are mentioned in the question are to be considered in the computation part.