Question

Sheffield Corp. reported the following year-end information: beginning work in process inventory, $88000; cost of goods manufactured, $820000; beginning finished goods inventory, $58000; ending work in process inventory, $78000; and ending finished goods inventory, $48000. How much is Sheffield’s cost of goods sold for the year?

Answer 1

Answer:

$830,000

Explanation:

Given:

Cost of goods manufactured = $820,000

Beginning finished goods inventory = $58,000

Ending finished goods inventory = $48,000

Cost of goods available for sale = Cost of goods manufactured + opening finished goods inventory

= 820,000 + 58,000

= $878,000

Cost of goods sold = Cost of goods available for sale - ending finished goods inventory

= 878,000 - 48,000

= $830,000

Opening and ending work in process is not relevant in this computation.