Cost of goods manufactured equals $44,000 for 2017.Finished goods inventory is $2,500 at the beginning of the year and $5,500 at the end of the year.Total manufacturing overhead applied is $4,500.Beginning and ending work in process for 2017 are $6,000 and $5,000 respectively.How much is cost of goods sold for the year?

Question

Quizplus · Accepted Answer

Cost of Goods Sold (COGS) is calculated as: Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory. So, $2,500 + $44,000 - $5,500 = $41,000.

Cost of Goods Manufactured Equals $44,000 for 2017