Question

Compute cost of goods sold for 2015 using the following information. Finished goods inventory, Dec. 31, 2014 $ 345,000 Work in process inventory, Dec. 31, 2014 83,500 Work in process inventory, Dec. 31, 2015 72,300 Cost of goods manufactured, 2015 918,700 Finished goods inventory, Dec. 31, 2015 283,600

Answer 1

Answer:

$991,300

Explanation:

Given that,

Finished goods inventory, Dec. 31, 2014 = $345,000

Work in process inventory, Dec. 31, 2014 = $83,500

Work in process inventory, Dec. 31, 2015 = $72,300

Cost of goods manufactured, 2015 = $918,700

Finished goods inventory, Dec. 31, 2015 = $283,600

We need to calculate cost of goods manufactured first.

Cost of goods manufactured:

= Cost of goods manufactured, 2015 + Beginning work in process inventory - Ending work in process inventory

= $918,700 + $83,500 - $72,300

= $929,900

Cost of goods sold for 2015:

= Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory

= $345,000 + $929,900 - $283,600

= $991,300