Question

Youngstown Rubber reports the following data for its first year of operation.Direct materials used$710,000Cost of goods manufactured680,000Finished goods inventory, ending190,000Manufacturing overhead100,000Finished goods inventory, beginning0Work in process inventory, beginning0Work in process inventory, ending130,000What is the cost of goods sold?A) $395,000B) $455,000C) $490,000D) $1,265,000

Answer 1

Answer:

C.) $490,000

Explanation:

The Cost of goods manufactured of $680,000 plus the Finished Goods beginning would give us the Cost of goods available for sale. Since there is no Finished Goods beginning (0), The Cost of goods available for sale will then automatically be $680,000.

Then deduct the Finished Goods ending of $190,000. The result would give us $490,000 which is the Cost of Goods Sold.

(680,000 - 190,000 = 490,000)