The cost of goods sold for Michaels Manufacturing in the current year was $233,000. The January 1 finished goods inventory balance was $31,600, and the December 31 finished goods inventory balance was $24,200. Cost of goods manufactured during the period was
A) $233,000
B) $225,600
C) $288,800
D) $240,400

Question

Quizplus · Accepted Answer

Cost of goods manufactured = Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory
= $31,600 + Cost of goods manufactured - $24,200
$233,000 = $31,600 + Cost of goods manufactured - $24,200
Cost of goods manufactured = $225,600

The Cost of Goods Sold for Michaels Manufacturing in the Current