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 is calculated as: Beginning Inventory + Cost of Goods Manufactured - Ending Inventory = Cost of Goods Sold. Rearranging gives: Cost of Goods Manufactured = Cost of Goods Sold + Ending Inventory - Beginning Inventory = $125,000 + $56,000 - $48,000 = $133,000.

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