Question

using the following data for july, calculate the cost of goods manufactured: beginning finished goods inventory 150,475. Ending finished goods inventory 145,750. sales 400,000. Gross Margin 120,000. The cost of goods manufactured was

Answer 1

Answer:

The correct response is "$275,275".

Explanation:

The given values are:

Sales,

= 400,000

Gross margin,

= 120,000

Beginning Inventory goods,

= 150,475

Finished inventory goods,

= 145,750

Now,

The cost of goods sold will be:

= $Sales-Gross \ margin$

On substituting the values, we get

= $400,000-120,000$

= $280,000$

As we know,

⇒ $Cost \ of \ goods \ sold=Beginning \ inventory \ goods+ cost \ of \ goods \ manufactured-Ending \ inventory \ goods$

⇒ $280,000=150,475+ cost \ of \ goods \ manufactured-145750$

⇒ $280,000=cost \ of \ goods \ manufactured+4,725$

⇒ $Cost \ of \ goods \ manufactured=280,000-4,725$

⇒                                                 $=275,275$ ($)