Question

Using $3040000 as the cost of goods manufactured, compute the cost of goods sold using the following information
Raw materials inventory, January 1 $ 20000
Raw materials inventory, December 31 40000
Work in process, January 1 18000
Work in process, December 31 12000
Finished goods, January 1 40000
Finished goods, December 31 32000
Raw materials purchases 1700000
Direct labor 760000
Factory utilities 150000
Indirect labor 50000
Factory depreciation 400000
Operating expenses 420000
a) $3046000.
b) $3048000.
c) $3032000.
d) $3008000.

Answer 1

Answer:

b) $3,048,000

The cost of goods sold is $3,048,000

Explanation:

Particulars                                                   Amount

Finished goods inventory (Jan 1)                40,000

Add: Cost of goods manufactured            3,040,000  

Cost of goods available for sale               3,080,000

Less: Finished goods inventory (Dec 31)   32,000

Cost of goods sold                                    3,048,000