Question

During FY 2016, Bravo Manufacturing had a beginning finished goods inventory of $250 & ending finished goods inventory of $1,000.
Work-in-process decreased by $500 during FY 2016 and factory overhead was $2,000.

The total manufacturing costs amounted to $48,000.

Use this information to determine the FY 2016 dollar amount of: (Round dollar values & enter as whole dollars only.)

1. Cost of Goods Manufactured
2. Cost of Goods Sold

Answer 1

Answer:

1. Cost of Goods Manufactured  is $48,500

2. Cost of Goods Sold is $47,750

Explanation:

1. Cost of Goods Manufactured

Total Manufacturing Costs                     $48,000

Add Decrease in Work-in-process              $500

Cost of Goods Manufactured                 $48,500

2. Cost of Goods Sold

Opening Stock of Finished Goods             $250

Add Cost of Goods Manufactured        $48,500

Less Closing Stock of Finished Goods  ($1,000)

Cost of Goods Sold                                 $47,750