Question

Current Attempt in Progress Sheridan Company's accounting records reflect the following inventories: Dec. 31, 2020 Dec. 31, 2019 Raw materials inventory $310000 $260000 Work in process inventory 300000 160000 Finished goods inventory 190000 150000 During 2020, $1080000 of raw materials were purchased, direct labor costs amounted to $684700, and manufacturing overhead incurred was $848000. If Sheridan Company's cost of goods manufactured for 2020 amounted to $2422700, its cost of goods sold for the year is

Answer 1

Answer:

$2,282,700

Explanation:

Calculation to determine the cost of goods sold for the year

Using this formula

Cost of good sold=Cost of goods manufactured for 2020-(Dec. 31, 2019 Work in process inventory-Dec. 31, 2020Work in process inventory)

Let Plug in the formula

Cost of good sold=$2,422,700- ($160,000-$300,000)

Cost of good sold=$2,422,700- $140,000

Cost of good sold=$2,282,700

Therefore the cost of goods sold for the year is $2,282,700