Answer:
Cost of Goods Manufactured is $2,435,000
Explanation:
To compute the costs of goods manufactured,
STEP 1, <em>Compute the total goods available for sale. </em>In order to get the total goods available for sale, we will add the costs of goods sold and the finished goods end (December 31)
Cost of goods sold $2,560,000
<u>Add: Finished goods (December 31) $640,000</u>
Total goods available for sale $3,200,000
Finally, <em>Compute the costs of goods manufactured for the year. </em>To get the costs of goods manufactured, we simply deduct the finished goods beginning (January 1) from the total goods available for sale we computed above.
Total goods available for sale $3,200,000
<u>Less: Finished goods beginning (January 1) 765,000</u>
COST OF GOODS MANUFACTURE $2,435,000