Question

A manufacturing company has a beginning finished goods inventory of $27,300, cost of goods manufactured of $57,500, and an ending finished goods inventory of $26,600. The cost of goods sold for this company is: Multiple Choice $111,400. $56,800. $3,600. $84,100. $58,200.

Answer 1

Answer:

$58,200.

Explanation:

We use the inventory identity to solve for COGS

$Beginning Inventory + Production = Ending Inventory + COGS$

Beginning Inventory  27,300

Production  57,500

Ending  26,600

27,300 + 57,500 = 26,600 + COGS

COGS = 27,300 + 57,500 - 26,600

COGS = 58,200