Question

Worth Company reported the following year-end information: beginning work in process inventory, $180,000; cost of goods manufactured, $866,000; beginning finished goods inventory, $252,000; ending work in process inventory, $220,000; and ending finished goods inventory, $264,000. Worth Company’s cost of goods sold for the year is _______.

Answer 1

Answer:

COGS= $854,000

Explanation:

Giving the following information:

the cost of goods manufactured, $866,000

beginning finished goods inventory, $252,000

and ending finished goods inventory, $264,000

To calculate the cost of goods sold, we need to use the following formula:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 252,000 + 866,000 - 264,000= $854,000