The following information has been taken from Blue Mountains accounting records:
$$\begin{array} { l r }
\text { Beginning work-in-process inventory } & \$ 50,000 \
\text { Ending work-in-process inventory } & 48,000 \
\text { Beginning finished goods inventory } & 180,000 \
\text { Ending finished goods inventory } & 195,000 \
\text { Cost of goods manufactured } & 1,220,000
\end{array}$$
What is cost of goods sold?
A)$1 222 000
B)$1 205 000
C)$1 218 000
D)$1 235 000

Question

The following information has been taken from Blue Mountains accounting records:
$$\begin{array} { l r } 
\text { Beginning work-in-process inventory } & \$ 50,000 \
\text { Ending work-in-process inventory } & 48,000 \
\text { Beginning finished goods inventory } & 180,000 \
\text { Ending finished goods inventory } & 195,000 \
\text { Cost of goods manufactured } & 1,220,000
\end{array}$$
What is cost of goods sold?
A)$1 222 000
B)$1 205 000
C)$1 218 000
D)$1 235 000

Quizplus · Accepted Answer

The cost of goods sold (COGS) can be calculated using the formula: COGS = Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory. Plugging in the values from the question: COGS = $180,000 + $1,220,000 - $195,000 = $1,205,000.

The Following Information Has Been Taken from Blue Mountains Accounting