Question

A manufacturing company reports the following items:
Finished goods inventory, beginning balance: $1,000
Finish goods inventory, ending balance: $1,200
Cost of goods manufactured, $5,000
1. The cost of goods sold is __________.

Answer 1

Answer:

The cost of goods sold is  $ 4,800.

Explanation:

This problem requires us to calculate cost of good sold. The opening and closing balance of finished goods is given in the question. The cost of good manufactured is also provided in the question.

The cost of good sold can be calculated by finding the amount transferred from finished good account. Detail calculation is given below.

Finished good inventory begining       $ 1,000

Cost of good manufactured                  $ 5,000

Finished good inventory ending           ($ 1,200)

Cost of good sold                                   $ 4,800