Question

Cost of goods manufactured equals $55,000 for 2020. Finished goods inventory is $2,000 at the beginning of the year and $5,500 at the end of the year. Beginning and ending work in process for 2020 are $4,000 and $5,000, respectively. How much is cost of goods sold for the year?

Answer 1

Answer:

$51,500

Explanation:

The computation of the cost of goods sold for the year is shown below:

As we know that

Cost of Goods Sold = Beginning balance of Finished Goods Inventory + Cost of Goods Manufactured – Ending balance of Finished Goods Inventory

= $2,000 + $55,000 - $5,500

= $51,500

We simply applied the cost of goods sold formula by taking the three items into the computation part