Question

3. A manufacturing company has a beginning finished goods inventory of $14,600, raw material purchases of $18,000, cost of goods manufactured of $32,500, and an ending finished goods inventory of $17,800. The cost of goods sold for this company is: a. $47,100. b. $27,600. c. $21,200. d. $29,300. e. $32,500.

Answer 1

Answer:Cost of Goods Sold =$29,300

Explanation:

Cost of goods sold refers to the  costs (direct costs) a business incurs in  the production of  goods sold by a company. it is calculated as

Cost of goods sold =Cost of manufactured Goods + Beginning finished goods inventory - Ending finished goods inventory

Cost of Goods Sold = $32,500 + $14,600 - $17,800

Cost of Goods Sold =$47,100- $17,800

Cost of Goods Sold =$29,300