Which of the following formulas determine cost of goods sold in a manufacturing entity?
A) Beginning work-in-process inventory + Cost of goods manufactured - Ending work-in-process inventory = Cost of goods sold
B) Beginning work-in-process inventory + Cost of goods manufactured + Ending work-in-process inventory = Cost of goods sold
C) Cost of goods manufactured - Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold
D) Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold

Question

Quizplus · Accepted Answer

The correct formula for calculating the cost of goods sold in a manufacturing entity is: Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory. This formula accounts for the total cost of goods available for sale during the period and subtracts the cost of goods that remain unsold at the end of the period.

Which of the Following Formulas Determine Cost of Goods Sold