Assume the following information for Knight Corporation for the year ended December 31: $\begin{array}{lr}
\text {Sales } &\$2,250\
\text { Cost of goods manufactured for the year } &1,350\
\text { Beginning finished goods inventory } &450\
\text {Ending finished goods inventory } &495\
\text {Selling and administrative expenses } &300\
\end{array}$
What is the cost of goods sold for the year ended December 31?
A)$1,305
B)$1,350
C)$1,605
D)$1,650

Question

Assume the following information for Knight Corporation for the year ended December 31: $\begin{array}{lr}
  \text {Sales  } &\$2,250\
 \text { Cost of goods manufactured for the year  } &1,350\
 \text { Beginning finished goods inventory } &450\
 \text {Ending finished goods inventory  } &495\
 \text {Selling and administrative expenses  } &300\
\end{array}$
 What is the cost of goods sold for the year ended December 31?
A)$1,305
B)$1,350
C)$1,605
D)$1,650

Quizplus · Accepted Answer

The cost of goods sold (COGS) is calculated as: Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory. Therefore, COGS = $450 + $1,350 - $495 = $1,305.

Assume the Following Information for Knight Corporation for the Year