Question

Super Tread Inc. is a large manufacturer of auto tires. Super Tread has provided the following​ information: Sales Revenue $ 60 comma 000 Beginning Finished Goods Inventory 22 comma 500 Cost of Goods Sold 35 comma 000 Cost of Goods Manufactured 59 comma 000 Calculate the amount of ending Finished Goods Inventory reported on Super​ Tread's balance sheet.

Answer 1

Answer:

ending finished inventory= 46,500

Explanation:

Giving the following information:

Beginning Finished Goods Inventory= $22,500

Cost of Goods Sold= $35,000

Cost of Goods Manufactured= $59,000

To calculate the finished goods inventory, we need to isolate it form the cost of goods formula:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

ending finished inventory= beginning finished inventory + cost of goods manufactured - COGS

ending finished inventory= 22,500 + 59,000 - 35,000

ending finished inventory= 46,500