Question

What is the cost of goods sold given the following information? Beginning Work in Process 125,000 Beginning Finished Goods 78,000 Ending Work in Process 139,500 Ending Finished Goods 102,000 Direct Labor Cost 15,000 Cost of Goods Manufactured 145,000

Answer 1

Answer:

$121,000

Explanation:

Given that,

Beginning Work in Process = 125,000

Beginning Finished Goods = 78,000

Ending Work in Process = 139,500

Ending Finished Goods = 102,000

Direct Labor Cost = 15,000

Cost of Goods Manufactured = 145,000

Cost of goods sold refers to the cost of acquiring and manufacturing the goods to be sold during a period of time. It includes all the costs that are directly related to the production of the goods.

Cost of goods sold is calculated by the following formula:

= Beginning Finished Goods inventory + Cost of Goods Manufactured - Ending Finished Goods

= 78,000 + 145,000 - 102,000

= $121,000