Question

Cost of Goods Sold Allyson Ashley makes jet skis. During the year, Allyson manufactured 94,000 jet skis. Finished goods inventory had the following units: January 1 6,800 December 31 7,200 Required: 1. How many jet skis did Allyson sell during the year? units 2. If each jet ski had a product cost of $2,200, what was the cost of goods sold last year? $

Answer 1

Answer:

1. Number of Jetskis sold = 93,600

2. cost of Jetskis sold = $205,920,000

Explanation:

First, let us lay out the information given clearly:

January 1  finished goods inventory = 6,800

December 31 finished goods inventory = 7,200

number of Jet skis manufactured = 94,000

1. Number of Jet skis sold:

let us calculate the total number of jetskis that were available throughout the year

Total number of Jet skis in stock during the year = number of Jet skis manufactured + January 1  finished goods inventory (beginning inventory)

Total number of Jet skis in stock during the year = 94,000 + 6,800

Total number of Jet skis in stock during the year = 100,800

Number of Jetskis sold = (Total number of Jet skis in stock during the year) - (December 31 finished goods inventory)

Number of Jetskis sold = 100,800 - 7,200 = 93,600

2. cost of good sold:

product cost of 1 Jetski = $2,200

Number of Jetskis sold = 93,600

∴ Cost of Jetskis sold last year = 93,600 × 2,200 = $205,920,000