Question

A manufacturing company had a balance in Finished Goods inventory of $200,000 on 12/31/2011. During 2012, the company transferred $1,000,000 of costs from Work in Process to Finished Goods. A count of inventory at the end of the year revealed a balance in Finished Goods of $400,000 at 12/31/2012. What was Cost of Goods Sold during 2012

Answer 1

Answer:

the cost of goods sold during the year 2012 is $800,000

Explanation:

The computation of the cost of goods sold is shown below;

Costs of Goods Sold during 2012 is

= Transferred from Work in Process + Beginning Inventory - Ending Inventory

= $1,000,000 + $200,000 - $400,000

= $800,000

Hence, the cost of goods sold during the year 2012 is $800,000