Question

Calculate the cost of goods sold when beginning finished goods inventory equals $70,000, ending finished goods inventory is $85,000, and cost of goods manufactured is $600,000.
a. $615,000
b. $445,000
c. $685,000
d. $585,000

Answer 1

Cost of goods sold can be calculated by adding the cost of goods manufactuted and the beginning inventory less the ending inventory.Thus,we will use the formula
Cost of goods sold =cost manufactured +beginning inventory-endong inventory
Substitute the values,we will get
Cost of goods sold =$600000+$70000-$85000
=$585,000
The Cost of goods sold is d.$585,000