Question

Worth Company reported the following year-end information: beginning work in process inventory, $180,000; cost of goods manufactured, $816,000; beginning finished goods inventory, $252,000; ending work in process inventory, $220,000; and ending finished goods inventory, $264,000. Worth Company's cost of goods sold for the year is:__________.
a. $804,000.
b. $828,000.
c. $776,000.
d. $552,000.

Answer 1

Answer:

a. $804,000

Explanation:

Preparation of Worth Company's cost of goods sold for the year

Cost of goods manufactured $816,000

Add Beginning finished goods inventory $252,000

Less Ending finished goods inventory ($264,000)

Cost of goods sold $804,000

Therefore Worth Company's cost of goods sold for the year is: $804,000