Question

The budgeted finished goods inventory and cost of goods sold for a manufacturing company for the year 2012 are as follows: January 1 finished goods, $765,000; December 31 finished goods, $640,000; cost of goods sold for the year, $2,560,000. The budgeted costs of goods manufactured for the year is?a. $2,560,000b. $3,965,000c. $2,435,000d. $1,405,000

Answer 1

Answer:

d. $2,435,000

Explanation:

To calculate the cost of goods manufactured, we need to use the formula below;

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

$2,560,000 = $765,000 + Cost of goods manufactured - $640,000

Cost of goods manufactured = $2,560,000 - $765,000 + $640,000

Cost of goods manufactured = $2,435,000