Harrison Industries began July with a finished-goods inventory of $48,000. The finished-goods inventory at the end of July was $56,000 and the cost of goods sold during the month was $125,000. The cost of goods manufactured during July was:
A) $104,000.
B) $125,000.
C) $117,000.
D) $133,000.
E) None of the answers is correct.

Question

Quizplus · Accepted Answer

The cost of goods manufactured during July can be calculated using the formula: Cost of Goods Manufactured = Cost of Goods Sold + Ending Finished Goods Inventory - Beginning Finished Goods Inventory. Plugging in the given values: $125,000 + $56,000 - $48,000 = $133,000.

Harrison Industries Began July with a Finished-Goods Inventory of $48,000