Question

Sunland Company has $19000 of ending finished goods inventory as of December 31, 2019. If beginning finished goods inventory was $14000 and cost of goods sold was $49000, how much would Sunland report for cost of goods manufactured?

Answer 1

Answer:

$54,000

Explanation:

The computation of the reported cost of goods manufactured is shown below:

We know that

Cost of goods manufactured = Ending finished goods inventory + cost of goods sold - beginning finished goods inventory

= $19,000 + $49,000 - $14,000

= $54,000

We simply added the inventory of finished goods and subtract the inventory of finished goods from the cost of the sold goods.