Question

edmiston Company reported the following year-end information: beginning work-in-process inventory, $80,000; cost of goods manufactured, $750,000; beginning finished goods inventory, $50,000; ending work-in-process inventory, $70,000; and ending finished goods inventory, $40,000. How much is Edmiston’s cost of goods sold for the year

Answer 1

Answer:

$760,000

Explanation:

Costs of goods sold are the direct costs incurred in manufacturing products that sold to consumers in a period. It is obtained by using the formula below.

COGS = Beginning stock + purchases/ manufactured goods - ending stock stock.

For  Edmiston Company

Beginning stock: $50,000

Endings stock:  $40,000

Cost of goods manufactured: $750,000;

COGS = 50,000 + 750,000 - 40,000

COGS = $760,000